Important Signal for Ethereum: Ark Invest Increases Stake in BitMine Stocks, Betting on ETH to Break the $4000 Mark

Ark Invest, led by Cathie Wood, purchased $15.3 million worth of BitMine Immersion Technologies stocks through its three exchange-traded funds on Tuesday, while the day before, the company acquired $20 million worth of stocks. Ark Invest has been increasing its holdings in BitMine stocks to continuously adjust its exposure to Crypto Assets in its investment portfolio.

Last week, Ark Invest announced the acquisition of 4,773,444 shares of BitMine common stock, valued at $182 million. In the same week, BitMine revealed that its ETH holdings have exceeded $2 billion. This move not only demonstrates Ark Invest's confidence in BitMine and its Ethereum reserve strategy but also indirectly bets on the potential for ETH to break the $4,000 threshold.

Ark Invest Increases Stake in BitMine Stock: An Indirect Bet on Ethereum

Ark Invest has purchased shares of BitMine Immersion Technologies through its three exchange-traded funds (ETFs):

The ARK Innovation ETF (ARKK) purchased 323,186 shares of BitMine stock.

The ARK Next Generation Internet ETF (ARKW) purchased 104,244 shares.

The ARK Fintech Innovation ETF (ARKF) also purchased 50,068 shares of BitMine stock.

At the same time, according to the same disclosure, ARKF sold 18,843 shares of Jack Dorsey's Block Inc., valued at 1.47 million dollars.

Ark Invest's move to increase its stake in BitMine stocks reflects its ongoing adjustment to exposure related to Crypto Assets. This strategic investment indirectly indicates Ark Invest's optimism about the potential of Ethereum.

BitMine's Ethereum Reserve Strategy: Aiming to Become a Strategy in the ETH Realm

Thomas Lee, Chairman of the Board of BitMine, stated in a statement on Thursday: "Just 16 days after completing the $250 million first round of private placement, BitMine's ETH holdings have exceeded $2 billion. We are steadily achieving our goal of acquiring and staking 5% of the total ETH supply."

BitMine believes that the largest corporate holder of Ethereum (ETH), BitMine, thinks that the fair value of this asset could be as high as $60,000, far above its current market price of about $3,800. BitMine also pointed out in a post on X on July 28 that some long-term models suggest that the potential value of ETH exceeds $700,000.

The company revealed that this estimate was derived after consulting several research firms to evaluate the "reset value" of Ethereum, which refers to the theoretical cost of rebuilding or replacing the utility provided by ETH. BitMine claims that this value reflects the increasing recognition of Ethereum as a major macro asset over the next decade by institutions.

The company further pointed out that the rapid expansion of stablecoins may mark a turning point in Ethereum adoption, with its rise comparable to the breakthrough moment created by ChatGPT for artificial intelligence. BitMine also cited the prediction of U.S. Secretary of Commerce Scott Bessent, stating that the stablecoin market size could exceed $4 trillion, more than ten times its current size, which is a strong signal of Ethereum's long-term potential. As stablecoins issued on Ethereum exceed 60% and Wall Street increasingly explores tokenized assets, the network is positioning itself as a pillar of future digital finance.

BitMine's Ethereum Plan and Market Response

Considering this, BitMine stated that it is not just about purchasing ETH, but also about building an ecosystem around digital assets. According to the company, it intends to acquire 5% of the circulating supply of Ethereum, becoming a presence similar to that of Strategy (formerly MicroStrategy) in relation to Bitcoin. BitMine noted that it is smoothly achieving this milestone, as its ETH exposure reached 2.7 billion USD in just 18 days, significantly ahead of the time required for Strategy to reach Bitcoin exposure levels.

At the same time, the company has also constructed its Ethereum financial strategy as a form of infrastructure, rather than merely holding financial assets. BitMine believes that staking ETH can ensure network security, generate returns, and align the enterprise with the long-term success of Ethereum. Furthermore, as Wall Street gradually moves towards on-chain finance, BitMine no longer views ETH merely as a speculative tool, but as the foundational layer of future institutional systems. To achieve its goals, the company plans to develop a validator network based in the United States, contribute to Ethereum governance, and invest in on-chain projects that strengthen the network.

The company's acquisition of Ethereum has caused a stir in the traditional market. According to Google Finance data, BitMine's stock price (BMNR) soared from $4.26 in June to a peak of $107.48 on July 7. Its current trading price is approximately $35.11. Its net asset value per share also skyrocketed from $4 on July 8 to $23 on July 27, increasing sixfold in less than three weeks.

Conclusion:

Ark Invest's move to increase its holdings in BitMine stocks, along with BitMine's ambitious Ethereum reserve strategy, has injected strong bullish signals into the Ethereum market. This not only suggests that ETH may break through the $4000 threshold but also indicates that Ethereum's position in institutional-level applications and mainstream financial markets will continue to rise.