#Ethereum set a new multi-year high as blockchain company BitMine Immersion Technologies announced plans to raise up to $20 billion to buy $ETH . The price of the second-largest cryptocurrency by market cap surpassed the psychologically important $4,500 mark, reaching $4,683 on the #Binance exchange, the highest since November 2021.
BitMine Prepares for Massive Ethereum Purchase
BitMine, led by Chairman Tom Lee, has filed with the Securities and Exchange Commission (SEC) to increase its common stock sales limit to $24.5 billion. The firm already holds $4.96 billion worth of Ethereum, and the new plan would bring its total ETH reserves to a record high.
The document states: “With this prospectus supplement, we are increasing the aggregate amount of common shares that may be sold under the sales agreement to $24.5 billion.” BitMine shares are up 5.6% on the day, matching Ethereum’s gain.
Analysts see parallels with Bitcoin boom
Trader and analyst Michaël van de Poppe pointed out on social media X that Ethereum has risen more than 100% in less than two months, a situation he says is reminiscent of the launch of a Bitcoin ETF that spurred a rally in the first cryptocurrency.
Investor Ted Pillows compared BitMine Chairman Tom Lee to Strategy CEO Michael Saylor, who built the largest corporate Bitcoin reserve.
Keith Alan, co-founder of trading platform Material Indicators, said Ethereum is “defying gravity.” He believes that a “gift” for investors will be a pullback to the 21-day simple moving average ($3,822).
Bitcoin remains in sideways movement
Meanwhile, Bitcoin is in a range after a failed attempt to update its historical maximum the day before. Positive macroeconomic news in the form of the US Consumer Price Index (CPI) failed to give impetus to the first cryptocurrency - altcoins have seized the initiative.
The July CPI was 0.1% below expectations, raising the prospects of the Federal Reserve cutting interest rates at its September meeting, which has traditionally supported cryptocurrencies and risk assets.
Rekt Capital analyst noted that Bitcoin has successfully tested a multi-week downtrend as new support. If the price continues to show stability at this level — perhaps even in the form of a bull flag — the asset could make another attempt to reach the range high, marked in blue on the chart.
BitMine's corporate Ethereum purchases demonstrate growing institutional interest in the altcoin. The company's $20 billion plan could be a catalyst for further growth in the second-largest cryptocurrency by market cap, especially amid expectations of the Fed's monetary easing.
