The corporate Ether acquisition race is accelerating as BitMine and SharpLink raise billions to acquire more ETH, nearing its all-time high.
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BitMine is raising $24.5 billion to acquire more Ether tokens.
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SharpLink has completed a $389 million capital raise to increase its Ether holdings.
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Ether is trading 9% below its previous all-time high of $4,890.
Corporate Ether acquisition is surging as BitMine and SharpLink raise billions, with ETH nearing record highs. Discover the details here!
| Company | Amount Raised | ETH Holdings |
|---|---|---|
| BitMine | $24.5 billion | 1.2 billion ETH |
| SharpLink | $389 million | 598,000 ETH |
What is Driving the Corporate Ether Acquisition?
The corporate Ether acquisition is driven by increasing institutional interest in Ether as a treasury reserve asset. Ether has seen a significant price rise, trading at $4,408, just 9% below its all-time high.
How Are Companies Raising Capital for Ether?
BitMine is raising $24.5 billion through an at-the-market stock sale, while SharpLink has raised $389 million from institutional investors. Both firms aim to use these funds primarily for acquiring more Ether.
Frequently Asked Questions
What are the implications of corporate Ether acquisitions?
Corporate acquisitions of Ether could lead to increased demand and price stability, as firms hold significant amounts of the cryptocurrency.
Why is Ether considered a treasury reserve asset?
Ether is being adopted as a treasury reserve asset due to its growing acceptance and potential for appreciation, similar to Bitcoin.
Key Takeaways
- Corporate Interest is Rising: Major firms are increasingly viewing Ether as a viable treasury asset.
- Significant Capital Raises: BitMine and SharpLink are leading the charge with billions raised for Ether acquisition.
- Market Positioning: Ether is now trading close to its all-time high, indicating strong market confidence.
Conclusion
The surge in corporate Ether acquisitions by firms like BitMine and SharpLink highlights a growing trend in institutional investment. This could significantly impact the cryptocurrency market, as Ether approaches its previous highs and solidifies its position as a treasury asset.
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The corporate Ether acquisition race is accelerating as BitMine and SharpLink raise billions worth of capital to acquire more of the world’s second-largest cryptocurrency, which is nearing its previous all-time high.
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Public Bitcoin (BTC) mining firm BitMine Immersion Technology is looking to raise $24.5 billion through a new at-the-market (ATM) stock sale offering to acquire more Ether (ETH) tokens, according to a Tuesday US Securities and Exchange Commission filing.
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BitMine’s offering comes the same day as corporate crypto treasury firm SharpLink completed a $389 million capital raise from common stock shares sold for select institutional investors, according to another SEC filing. “We intend to contribute substantially all of the cash proceeds that we receive to acquire ETH,” the filing said.
Part of the $389 million raised will also be used for “working capital needs, general corporate purposes, operating expenses, and core affiliate marketing operations,” SharpLink said.
SharpLink has raised about $1.4 billion in gross proceeds to date from more than 71.5 million shares sold, the filing shows.
BitMine is the world’s largest corporate holder of Ether with 1.2 billion ETH worth $5 billion on its books, followed by SharpLink with 598,000 Ether worth $2.64 billion, data from StrategicEthReserve shows.
BitMine previously announced plans to acquire up to 5% of Ether’s supply.
Ether nears all-time high amid growing corporate adoption
Corporations and publicly-traded firms are increasingly adopting Ether as a secondary treasury reserve asset, which saw Ether price rise over 21% during the past week, to trade at $4,408 at the time of writing.
Ether is now trading 9% below its old all-time high of 4,890 recorded in November 2021, Cointelegraph data shows.
“Wall Street firms and the broader TradFi world are just warming up to the idea of Ethereum as a treasury reserve asset,” Gracy Chen, CEO of crypto exchange Bitget, told Cointelegraph.
Growing interest in real-world asset tokenization has reignited a renewed interest in Ether as a secondary reserve asset next to Bitcoin, added Chen.
This dynamic may see Ethereum-focused treasury firms amass up to 10% of the total Ether supply in the long term, up from holding just 1% on July 29, Standard Chartered has predicted.
