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Bitmain's Mister Beast investment, expecting 10x returns... ETH assets also projected to generate $400 million annually
Bitmain has recently unveiled an ambitious investment strategy. The company’s management announced an investment of $200 million into Beast Industry, the content creator MrBeast is part of, expecting to generate ten times the return. At the same time, they are prepared to generate substantial profits from their Ethereum holdings.
Strategic Choice Toward Next-Generation Content Creators
On the 16th, Bitmain Chairman Thomas Lee explained the significance of the MrBeast investment at the shareholders’ meeting. He emphasized that MrBeast is a leading content creator representing the current generation and that this partnership will help make Ethereum more familiar to younger audiences. Chairman Lee described this as “a natural strategic decision,” explaining that the investment was driven by a macro perspective of popularizing the Ethereum ecosystem.
Profit Generation Plan for $13 Billion Ethereum Asset
Bitmain’s Ethereum holdings currently amount to $13 billion. Chairman Thomas Lee expects to generate over $400 million in annual pre-tax profits from these assets, most of which will be realized through staking. The current Ethereum price remains around $2,960.
It has been reported that the company has been continuously purchasing Ethereum since July of last year. Lee claimed that recent purchases over the past few months may have saved “approximately $400 million in costs.”
Practical Challenges: Unrealized Losses and Long-Term Outlook
However, the outlook is not entirely positive. Bitmain is currently facing an unrealized loss of approximately $2.3 billion. This is an unavoidable result of market volatility since their Ethereum purchases. Nonetheless, the company views this as short-term volatility and considers both Ethereum and the MrBeast investment to hold strategic value from a long-term perspective. The expectation of a 10x return on the MrBeast investment also reflects this mid- to long-term investment philosophy.