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- Bitmine purchased 10,000 ETH, pushing holdings above 5 million ETH.
- Firm is nearing its goal of owning 5% of total Ethereum supply.
- Over 80% of holdings are staked, generating yield despite unrealized losses.
Tom Lee-backed crypto firm Bitmine has deepened its commitment to Ethereum, acquiring another 10,000 ETH directly from the Ethereum Foundation. The over-the-counter deal, executed at an average price of $2,292, underscores the company’s aggressive push to become one of the largest ETH holders globally.
The latest purchase comes as Bitmine steadily advances toward its ambitious target of controlling 5% of Ethereum’s total circulating supply—a goal that would cement its influence in the ecosystem.
Ethereum Foundation Funds Core Development
The Ethereum Foundation confirmed that the transaction will help finance its ongoing operations. Proceeds from the sale are earmarked for protocol research and development, ecosystem growth initiatives, and community grant programs.
This marks the second consecutive week that Bitmine has acquired 10,000 ETH from the Foundation. The repeated transactions signal a mutually beneficial arrangement: Bitmine strengthens its long-term ETH position, while the Foundation secures funding without impacting open market liquidity.
Bitmine’s Holdings Near Strategic Milestone
With the latest acquisition, Bitmine now holds approximately 5.09 million ETH—equivalent to more than 4.2% of total supply. The firm is closing in on its 5% ownership target, a milestone that could have broader implications for market dynamics and governance participation.
However, the strategy carries risk. Bitmine reportedly holds its ETH at an average cost of around $3,600, leaving it with a substantial unrealized loss amid current price levels. Despite this, the firm continues to accumulate, signaling strong conviction in Ethereum’s long-term outlook.
Staking Strategy Strengthens Long-Term Play
Beyond accumulation, Bitmine is actively deploying its ETH into staking. The company has staked roughly 4.2 million ETH—over 80% of its total holdings—positioning itself to earn yield while supporting network security.
Recent data from Lookonchain indicates that Bitmine added another 162,088 ETH to its staking pool, valued at approximately $366 million. This move highlights a dual strategy: long-term holding combined with income generation through staking rewards.
Shares of Bitmine (BMNR) rose over 2% following news of the latest ETH purchase, briefly climbing to around $22. The uptick reflects investor optimism around the firm’s expanding Ethereum exposure.
Also Read: Bitmine Joins NYSE With $4B Buyback—What It Means for Ethereum Investors
Still, broader market pressures remain. The stock has declined in recent days and is down significantly year-to-date, tracking Ethereum’s price struggles amid global geopolitical tensions.
Bitmine’s continued Ethereum accumulation signals unwavering confidence in the asset despite short-term market volatility. As the firm edges closer to controlling 5% of ETH supply, its strategy could reshape institutional participation in Ethereum’s ecosystem. Whether this high-stakes bet pays off will largely depend on Ethereum’s long-term price recovery and network growth.
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 your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
