Key Insights
- BitMine bought over 60,000 ETH last week, boosting its weekly ETH acquisition.
- The company now holds more than 4.5 million ETH, representing 3.76% of the token supply.
- BitMine is bullish on ETH recovering soon, even as a short seller takes a position against Ethereum.
Ethereum treasury company BitMine has acquired an additional 60,976 ETH over the past week. The company disclosed this in a recent press release. This indicated that it is inching closer to owning 4% of the Ethereum supply.
The latest acquisition comes as BitMine chairman Tom Lee maintains his bullish position on ETH. This also highlighted that the mini-winter is about to end for crypto. The company currently has over $10 billion worth of assets.
BitMine Ethereum Supply Crosses 4.5 Million Tokens
According to the press release, BitMine’s latest acquisition brings its total to 4,534,563 ETH. The company holds 195 Bitcoin and a $200 million stake in Mr Beast’s Beast Industries. It also owns a $14 million stake in Eightco Holdings and $1.2 billion in cash.
While the company holds other assets, the ETH accounts for the majority at around $9 billion at an average price of $1,965. Its ETH holdings also represent 3.76% of Ethereum’s total supply.
BitMine remains the second-largest crypto treasury, behind Strategy. It holds 720,737 BTC valued at $48 billion. It is also one of the most traded stocks in the US. It ranks 125th with over $1 billion in daily trading volume across five days.
Interestingly, the company has staked over 3.04 million ETH, worth around $6 billion, representing 67% of its holdings. This underscores the importance of stakeholders to its strategy. From the staked ETH, it is generating annualized revenue of around $174 million.
It remains the biggest ETH staker globally, remaining key to launching its Made in America Validator Network (MAVAN) in 2026. At press release, when all its ETH are fully staked, it could generate around $259 million in staking revenue.
BitMine Bullish on ETH Recovery
The over 60,000 ETH purchased last week represents an increase from its average weekly purchases of around 45,000-50,000 ETH. Lee noted that the company is deliberately increasing its rate of accumulation because it believes the bottom is near.
This aligns with Lee’s bullish sentiment, who believes the crypto market is about to bounce back. The chairman noted that the Ethereum price has shown resilience in recent weeks and believes the asset is in the final stages of winter.
He said:
Lee even predicted that Ethereum could hit a bottom between March 8th and March 14th. With this, the bottom occurs slightly below $1,740. However, the company is still carrying unrealized losses of over $7 billion, a fact many critics continue to highlight.
Short seller Culper Research recently took a short position on BitMine and Ethereum. They noted that the Fusaka upgrade in December has damaged ETH tokenomics. It argued that the increase in blockspace from that upgrade, which lowered transaction fees, has also affected staking yield.
The short seller argued that BitMine’s continued accumulation of ETH is uninformed. This contrasts it with Ethereum co-founder Vitalik Buterin, who sold around 20,000 ETH this year.
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