Peter Thiel-Backed BitMine Gobbles Up More Ethereum, Hits $1B in ETH Holdings

Peter Thiel-backed BitMine Immersion now has over $1 billion worth of Ethereum after buying another $500 million this week in ETH, the company said in a statement Thursday. 

New York Stock Exchange-listed firm (BMNR) said that it now had 300,657 ETH. On Monday, the firm, which shifted its focus from Bitcoin mining to create an ETH treasury less than a month ago, said it had holdings of ETH worth $500 million. 

“Acquiring $1 billion of ETH is a clear signal of our conviction in Ethereum’s long-term value,” BitMine CEO Jonathan Bates said in a statement. “We are committed to Ethereum’s continued growth and look forward to advancing our Ethereum treasury strategy.”

BitMine is part of a small but growing wave of firms that have been building ETH treasuries. Among others, SharpLink Gaming acquired $225 million worth of Ethereum earlier this month. 

ETH was recently trading close to $3,416, a nearly 7% gain over the day and its highest level since January, according to crypto data provider CoinGecko, bringing BitMine’s ETH coffers past its current threshold.

BitMine added in a statement that 60,000 ETH—representing approximately $200 million—are held through in-the-money options. In-the-money options refer to options that will be profitable for investors if they exercise them now. 

In a statement BitMine Board Chairman Thomas Lee also said that the company was well along in achieving a “goal of acquiring and staking 5% of the overall ETH supply.”

BitMine said last week that it had raised $250 million through the stock sale in order to buy ETH. 

The company’s stock has swung wildly since it said it would buy and hold the cryptocurrency. BMNR was recently trading down by nearly 3% over the past day. But over the past month, it has rocketed up by over 800%. 

ETH is the second biggest digital coin in existence, and its blockchain network is used by developers to build decentralized apps and products—which include everything from games and crypto exchanges to NFT collectibles. 

Thiel and his Founders Fund acquired a 9.1% stake in BitMine, according to an SEC filing this week. The Silicon Valley billionaire, a co-founder of PayPal, has been investing in the crypto space for years.