Crypto Treasury Stocks Outperform Market Amid Ether Accumulation

Introduction

On Monday, the crypto sector witnessed a notable shift as investors demonstrably favored digital asset treasuries (DATs). This trend resulted in crypto treasury stocks outperforming the broader crypto market, indicating a growing confidence in these companies holding significant amounts of cryptocurrencies.

BitMine Leads the Charge with Substantial Gains

BitMine Immersion Technologies emerged as a top performer, experiencing a remarkable stock surge of nearly 20% on Monday, according to Google Finance data. Its share prices climbed from just below $27 to surpass $31 by the end of the trading day, sustaining these gains in after-hours trading as Ether (ETH) prices edged higher.

BitMine's Past Performance

Despite this recent surge, BitMine stock (BMNR) has been on a decline since the crypto market peak in early October, shedding 50% of its value since then. Nevertheless, despite these losses, the stock remains up by a substantial 630% since the company initiated its Ether accumulation strategy in late June.

SharpLink Gaming and Strategy Follow BitMine's Lead

The second-largest Ether DAT, SharpLink Gaming (SBET), also experienced a rise in stocks on Monday, adding almost 6% during the day as share prices topped $10. Concurrently, Michael Saylor’s Strategy (MSTR) added 5% to reach $179 by the close of the trading day.

Expert Commentary

Macro investor Ted Pillows commented, "Ethereum treasury companies are showing no signs of a bottom. A reversal in these stocks will start a major reversal in ETH." This sentiment reflects the increasing optimism surrounding these companies and their potential to lead a broader recovery in the Ether market.

DAT Stocks' Recovery Outpaces Broader Crypto Market

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. This superior performance suggests that investors see value in companies holding substantial amounts of Ether, perhaps due to a long-term belief in the cryptocurrency's potential.

BitMine Now Holds 3% of the 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. Chairman Tom Lee commented on Monday that it is “two-thirds on the way to the ‘Alchemy of 5%’”.

BitMine's Recent Investments

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 announcement on Monday.

Institutional Investment Surge

Institutional investment in the firm has also surged, according to ‘BMNR Bullz’, citing Nasdaq figures, which reported 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.

Impact of Past Downturns on Ether

ETH was hit hard in the November market rout and remains down 41% from its August all-time high of $4,946.

Tom Lee's Comments on Market Volatility

Lee commented, “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.”