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- BitMine purchased 20,000 ETH via BitGo as prices fell below $2,000.
- The firm has reached 72% of its “Alchemy of 5%” goal to control 5% of the ETH supply.
- The upcoming MAVAN network aims to generate $252 million in annual staking rewards by 2026.
While the broader crypto market flinches at every minor price correction, Tom Lee and his team at BitMine Immersion Technologies (BMNR) are playing a much longer game. As retail investors scrambled for the exits during Ethereum’s recent dip below the $2,000 mark, BitMine did the opposite: they went shopping.
Buying When Others Fear: The BitGo Acquisition
On February 18, data from Lookonchain confirmed that BitMine acquired 20,000 ETH, a purchase valued at roughly $39.8 million, executed through BitGo. This wasn’t an isolated event. Just days prior, the firm revealed it had scooped up over 45,700 ETH in a single week.
For Lee, market weakness isn’t a red flag; it’s a discount. This “buy-the-dip” conviction has drawn natural comparisons to Michael Saylor’s relentless Bitcoin accumulation strategy. By aggressively expanding its balance sheet during downturns, BitMine is positioning itself as the institutional vanguard for Ethereum.
Chasing the “Alchemy of 5%”
BitMine isn’t just collecting tokens; it’s executing a specific blueprint dubbed the “Alchemy of 5%.” The firm’s ultimate objective is to control 5% of the total circulating supply of Ethereum. With its latest series of high-velocity purchases, BitMine has already reached approximately 72% of that goal.
This strategy transforms the company from a mere holder into a foundational pillar of the Ethereum network. However, this conviction comes with a cost in the public markets. While BitMine and peers like SharpLink (holding 864,840 ETH) and GameSquare (holding 15,630 ETH) continue to stack, their stock prices have taken a hit. Over the last month, GAME and SBET have dropped by 31% and 33%, respectively, suggesting that equity investors currently value short-term cash flow over long-term digital reserves.
Also Read: Ethereum Supply Shock: 50% of All ETH Now Locked as BitMine Buys Millions
From HODLing to Yield: The MAVAN Vision
The endgame for BitMine extends beyond price appreciation. The firm is building a massive income engine. Currently, roughly 3.04 million ETH of its holdings are staked, generating an estimated $176 million in annual rewards.
The real shift occurs in early 2026 with the launch of the MAVAN network (Made-in-America Validator Network). By bringing staking infrastructure in-house, BitMine expects to bypass third-party fees and boost its annual staking revenue to $252 million. In a market often obsessed with daily candles, BitMine is betting that owning the underlying infrastructure of the “world computer” is far more valuable than timing the perfect entry.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
