- South Korean retail investors sold a net $657 million of Tesla stock in August in a major capital rotation
- The main beneficiary was BitMine, a Bitcoin miner that saw $253 million in net inflows from Korean traders
- BitMine used the funds to grow its ETH treasury by 410%, now holding over 833,100 ETH worth $3.6 Billion
South Korea’s massive army of retail investors is dumping Tesla stock and rotating that capital directly into crypto.
Data for August shows a record $657 million sell-off of Tesla shares by Korean investors, with a huge portion of that cash flowing into an aggressive, Ethereum-focused mining company, BitMine Immersion Technologies.
The Great Rotation: Tesla Out, Crypto In
Despite once being among Tesla’s most loyal investor groups, South Korean traders are now reallocating capital into alternative markets. Tesla still remains the top foreign stock held by the group, with approximately $21.9 billion in holdings. Nvidia and Palantir Technologies followed as distant second and third choices.
How much Tesla stock was sold?
The leveraged exchange-traded fund TSLL, which offers double exposure to Tesla, also recorded its highest monthly withdrawal since early 2024. Investors pulled $554 million from the product in August, further displaying a decline in the stock.
Related: Now Trade Top U.S. Stocks 24/7: Kraken Rolls Out Tokenized Apple, Tesla, Nvidia On Solana
The Main Beneficiary: BitMine’s Massive Ethereum Treasury
The clear winner of this capital rotation is BitMine Immersion Technologies, an Ether-focused firm that has been aggressively accumulating ETH.
How much capital did BitMine attract?
The Ether-focused firm attracted $253 million of net inflows from South Korean traders in August alone. Since July, total inflows reached $259 million, making BitMine the most purchased overseas security in the country during that period.
How much ETH has BitMine accumulated until now?
Driven by these inflows, BitMine has increased its Ether holdings by 410.68% over the last 30 days, bringing the total to 833,100 ETH.
At the current Ethereum’s price of $4,410, the stash is valued near $3.6 billion, up 24% compared with the previous session. This accumulation has positioned BitMine as the largest single Ether-holding company globally.
Related: Ethereum Sees Diverging Moves as Institutions Sell While Bitmine Builds a $5.2B ETH Treasury
Vitalik Buterin Warns on Corporate Leverage
Ethereum’s growing adoption has gained support from industry leaders, but concerns about financial risks remain.
What is Vitalik’s warning?
Speaking on the Bankless podcast, Buterin endorsed companies building ETH treasuries but warned against the use of excessive leverage.
Buterin noted that an overleveraged market could lead to ongoing liquidations if Ether prices declined. He described such a chain reaction as a possible risk to Ethereum’s long-term stability. However, he expressed confidence that most treasury participants were avoiding such practices.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
