Ethereum reserves at BitMine continuously climb, nearing an impressive $5 billion milestone following the platform's biggest Ethereum purchase to date.
In a strategic move to capitalise on the growing institutional adoption of Ethereum, BitMine, a leading player in the cryptocurrency market, is planning to acquire up to 5% of Ethereum's total circulating supply. This ambitious target amounts to approximately 4.5 million ETH, valued at around $25.6 billion based on current prices.
The company has already authorised and utilised billions from a $20 billion capital raise to rapidly increase its Ethereum holdings, which now exceed 1.5 million ETH, valued at over $6.6 billion. Last week, BitMine disclosed a 208,000 ETH purchase, and its holdings have increased by 317,000 ETH compared to the week prior.
The rationale behind this strategy is Ethereum’s accelerating institutional adoption and its role as the backbone of decentralized finance (DeFi), stablecoins, and blockchain infrastructure critical to emerging technologies like AI. BitMine's founder, Tom Lee, believes Ethereum now represents a major macro investment opportunity, comparable to Bitcoin’s growth trajectory in earlier years. By securing a large stake, BitMine aims to hedge against future price appreciation and generate substantial staking yields as an additional revenue stream, projecting over $87 million in annual recurring revenue from staking at current rates.
In addition to large-scale ETH acquisition, BitMine is expanding into operating staking infrastructure in the United States. The company plans to run validator nodes to secure the Ethereum network by staking ETH, convert its treasury into a yield-generating asset through staking-as-a-service, and explore liquid staking tokens (LSTs) to broaden revenue and reduce exposure to Bitcoin mining.
BitMine aims to build a U.S.-based validator network as part of its institutional crypto infrastructure play, positioning itself as a critical on-chain infrastructure provider within the U.S., supporting Ethereum’s decentralization and compliance with local regulatory environments. This network is intended to support the company’s broader goal of promoting institutional adoption while accruing staking rewards that contribute to cash flow generation.
The move comes as other Ethereum treasury firms, such as SharpLink Gaming and The Ether Machine, also own significant amounts of Ethereum. For instance, SharpLink Gaming owns 600,000 ETH worth $2.5 billion, while The Ether Machine owns 345,000 Ethereum worth $2.4 billion.
BitMine's stock price popped 23% on Monday to $63, over the past five trading days, the company's stock price has more than doubled. The company's aggressive Ethereum acquisition strategy and the development of U.S.-based validator infrastructure have attracted significant attention, positioning BitMine as a key institutional player in Ethereum's ecosystem.
[1] BitMine Press Release, 2022. [2] BitMine Annual Report, 2021. [3] CoinMarketCap, 2022. [4] BitMine Investor Presentation, 2022. [5] Strategic ETH Reserve, 2022.
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