Digital asset treasury stocks surged on Monday, led by BitMine, even outpacing the broader crypto market’s gains as institutional ownership increased.
News
Crypto-sector investors favored digital asset treasuries (DATs) on Monday, with crypto treasury stocks outpacing the broader crypto market.
BitMine Immersion Technologies was leading the pack of major digital asset treasuries with a Monday stock surge of almost 20%, according to Google Finance.
Its surged from just below $27 to top $31 by the end of the trading day, maintaining those gains in after-hours trading as Ether () prices climbed.
BitMine stock (BMNR) has been in since the crypto market peak in early October, shedding 50% since then. However, despite those losses, the stock is still up 630% since the company its Ether accumulation strategy in late June.
The second-largest Ether DAT, SharpLink Gaming (SBET), also saw stocks rise on Monday, adding almost 6% on the day as share prices topped $10. Meanwhile, Michael Saylor’s Strategy (MSTR) added 5% to reach $179 by the end of the trading day.
“Ethereum treasury companies are showing no signs of a bottom. A reversal in these stocks will start a major reversal in ETH,” macro investor Ted Pillows.
The recovery in DAT stocks has outpaced the broader crypto market, which has seen gains of 2.1% in total capitalization over the past 24 hours.
BitMine now holds 3% of Ether supply
Digital asset treasuries have continued to hold and accumulate during the market correction, unlike retail traders who sold in panic.
As a result, BitMine has just passed a milestone of accumulating 3% of the total Ether supply. It is “two-thirds on the way to the ‘Alchemy of 5%’,” chairman Tom Lee on Monday.
Related:
The company currently holds 3.63 million ETH worth around $10.6 billion, according to StrategicEthReserve. It bought the dip, scooping up 69,822 ETH last week, according to a company on Monday.
Institutional investment in the firm has also surged, according to “BMNR Bullz,” who cited Nasdaq figures that institutional ownership of BitMine has skyrocketed from 6% to 31.7% in just 13 days.
Ether prices recover slowly
Ether prices have gained around 3% over the past 24 hours, hitting an intraday high of $2,980 during late trading on Monday. The asset found resistance there and has retreated slightly over the past few hours.
ETH was hit hard in the November market rout and remains down 41% from its all-time high of $4,946 in August.
“The continued decline in crypto prices in the past week reflects the impaired liquidity since October 10th, as well as price technicals, which remain weak,” commented Lee.
Magazine:
