Cryptocurrency analysts name the reason for Ethereum’s 7% drop

Ethereum ETH $4,195.47 Bridged Ether (StarkGate) 0.08% Market capitalization $98.02 million VOL. 24 hours $1.45 billion fell by 7% on Monday, September 22, despite a large-scale purchase by BitMine Immersion (BMNR). The firm said it had acquired 264,378 ETH worth about $ 1.1 billion, increasing its total holdings to 2.4 million ETH worth more than $ 10.13 billion. BitMine’s total assets are currently estimated at $ 11.4 billion, including 192 BTC, $ 175 million in investments in Eightco Holdings, and $ 345 million in cash.

The company also announced an agreement with an institutional investor to sell 5.2 million shares at $ 70 per share, bringing gross proceeds of $ 365.2 million. Additionally, the deal included a warrant to purchase another 10.4 million shares at a price of $ 87.5. If it is exercised by March 2026, BitMine will receive another $ 913 million, bringing the total amount of funds raised to $ 1.28 billion.

Despite this news, BitMine shares fell by 10%, dropping to $ 55. Analysts attribute this to the general downturn in the crypto market, where related assets are also becoming cheaper. BitMine switched to a strategy of holding Ethereum in June after raising $ 250 million in a private round with the participation of Peter Thiel’s Founders Fund, Galaxy Digital, and Pantera Capital.

According to the Strategic ETH Reserve platform, BitMine is the largest among public Ethereum holdings, which together control 4.15 million ETH. Thus, the company actually owns more than 2% of the entire Ethereum network.

As for the ETH market, futures positions worth $ 516.3 million were liquidated during the day, of which $ 489.6 million were in long contracts. Ethereum fell below the 50-day SMA for the first time in two months and is testing support at $ 4,000. In case of a further drop, the price may fall to the 100-day SMA, although technical indicators show that bearish pressure is likely to be exhausted.