- ARK Invest acquired $182M in BitMine shares, backing its Ethereum treasury strategy.
- BitMine plans to use all proceeds to acquire ETH, aiming to hold 5% of total supply.
- The deal positions BitMine as a proxy for Ethereum exposure, echoing MicroStrategy’s Bitcoin playbook.
Cathie Wood’s ARK Invest has acquired 4.77 million shares of BitMine Immersion Technologies (BMNR) for approximately $182 million. While at first glance this appears to be a straightforward acquisition between institutions, the ramifications of this purchase have serious implications for the Ethereum market and potentially position BitMine as a proxy for Ethereum exposure.
The thing is, BitMine offered these shares intending to use 100% of the net proceeds in its Ethereum treasury. As for Ark Invest, the fund manager may have found a loophole for Ether exposure similar to how Microstrategy’s MSTR stock became a proxy for Bitcoin holdings.
Chairman of BitMine’s Board Thomas Lee celebrated Ark’s investment, emphasizing the investment decisions of its CEO Cathie Woods: “Cathie is a pioneer of exponential investing, having made early and profitable investments in Tesla, Bitcoin, and AI. Most recently, she was an anchor investor in Circle, one of the most notable IPO’s in the past 6 years.”
Already cemented as the largest corporate Ether holder among publicly traded companies with a treasury worth around $1 billion in ETH, BitMine aims to continue its expansion with the ambitious goal of owning 5% of the total Ethereum supply.
Following the success that companies like MicroStrategy and MetaPlanet had with their Bitcoin-focused strategies, institutional Ethereum appears to be the next big trend among institutional investors.
With Ethereum trading above $3,600 and showing a 60% surge in recent weeks, BitMine’s ETH-centric strategy appears well-timed. Meanwhile, Ethereum’s ability to provide staking rewards to institutions post-Pectra upgrade makes the asset an attractive option for this new wave of companies seeking crypto treasuries.
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