Key points
- Bitmine purchased 12,535 ETH, increasing its holdings to 6.04 million.
- Despite continued increases in holdings, total reported assets decreased by $1.1 billion.
- Ethereum staking is expected to generate $309 million in annual revenue.
Bitmine Immersion Technologies (BMNR) purchased an additional 12,535 Ethereum (ETH), increasing its cryptocurrency treasury to 6,041,481, despite its broader investment portfolio declining by approximately $1.1 billion over the past week.
According to a filing made by Bitmine with the U.S. Securities and Exchange Commission (SEC) on October 19, Bitmine currently controls approximately 4.9% of the circulating supply of Ethereum, bringing it closer to its long-term goal of holding 5% of all ETH.
Amid broader weakness in the cryptocurrency market, the company continues to increase its holdings. Bitmine’s total cryptocurrency holdings, cash, tradable securities, and strategic investments declined from $16.2 billion on October 11 to $15.1 billion on October 18, indicating that the decline in ETH’s valuation may be offsetting the impact of new purchases.
Bitmine continues to buy Ethereum, but the treasury value has decreased.
As a result, the company's ETH holdings increased in size, but its reported value in U.S. dollars decreased from approximately $15.34 billion to $14.29 billion.
This divergence emerges as institutions send conflicting signals regarding demand for Ethereum. Recent ETF net outflows indicate weak investor positioning, while Bitmine continues to accumulate ETH despite short-term market conditions.
Ethereum's treasury is nearing the 5% supply cap
Bitmine's accumulation strategy is approaching a milestone that could substantially alter its role in the Ethereum market.
Chairman Tom Lee previously described the 5% ownership threshold as a clear cap, stating that further acquisitions would cease once the company reached that level.
Based on a circulating supply of approximately 122.1 million ETH, 5% is equivalent to about 6.105 million tokens. Therefore, assuming the disclosed supply remains unchanged, Bitmine still needs approximately 63,500 ETH to reach its target.
The company is nearing this holding limit, which could ultimately remove a sustained source of corporate demand from the market.
Previously disclosed purchase data has shown that the pace of accumulation has slowed as the treasury approaches this threshold.
Bitmine expects an annualized staking income of $309 million.
While continuously accumulating Ethereum, Bitmine is also building a substantial staking business.
The company disclosed that it has staked 5,067,309 ETH, representing approximately 84% of its total holdings. Based on a 7-day annualized staking yield of 2.58%, management estimates this portion of the holdings could generate approximately $309 million in annual income.
However, this prediction does not guarantee income. Actual staking returns depend on network conditions, validator performance, and changes in ETH-denominated rewards.
Bitmine's MAVAN infrastructure has expanded from company-owned vaults to serving institutional clients, potentially giving rise to a services business in addition to cryptocurrency investments.
The company also holds $582 million in cash and tradable securities, 215 bitcoins, and strategic investments in Beast Industries and Eightco.
Bitmine’s approach contrasts with companies that reduce their cryptocurrency exposure during periods of volatility. Its previous fundraising activities also demonstrate that corporate treasury strategies can combine digital asset purchases with capital market financing.