Bitmine has continued its aggressive Ethereum accumulation strategy, purchasing more than $135 million worth of ETH over the past week and further cementing its position as one of the largest institutional holders of the digital asset.
The company, chaired by Tom Lee and formerly focused on Bitcoin mining, added nearly 77,000 ETH to its reserves during the latest buying spree. Its total holdings have now expanded to 5,620,754 ETH, a stockpile currently valued at roughly $10 billion based on prevailing market prices.
Despite the massive accumulation, Bitmine remains significantly underwater on its investment. With an estimated average acquisition price of around $3,450 per ETH, the company is sitting on unrealized losses exceeding $9 billion.
Ethereum Holdings Continue to Grow
According to a recent company announcement, Bitmine’s total treasury value reached approximately $10.4 billion when the disclosure was made, although cryptocurrency prices have since fluctuated.
In addition to its sizable Ethereum position, the firm holds 204 BTC, approximately $502 million in cash and marketable securities, as well as equity investments in Beast Industries and Eightco Holdings valued at a combined $268 million.
Tom Lee described the latest $135 million ETH purchase as part of an “elevated pace” of accumulation, even as Ethereum recently experienced a market correction that briefly pushed its price down to $1,500 earlier this month.
Following the latest acquisition, Bitmine has now achieved roughly 93 percent of its goal of owning 5 percent of Ethereum’s total circulating supply.
Even so, the company remains confident in Ethereum’s long term prospects and believes the current market weakness fails to accurately reflect the network’s underlying value and strategic importance.
Lee noted that the firm’s Series A Preferred Stock offering has helped diversify its balance sheet. He added that Bitmine’s projected annual staking rewards of approximately $219 million provide a recurring source of cash flow capable of supporting dividend obligations associated with the preferred shares.
Building a Major Ethereum Staking Business
Bitmine has also emerged as a significant player in Ethereum staking.
The company disclosed that approximately 4.72 million ETH, representing more than 83 percent of its total Ethereum holdings, has been deployed through its validator infrastructure.
Based on current staking yields, Bitmine expects to generate around $226 million in annualized staking revenue. Management further estimated that if the entirety of its ETH reserves were allocated to staking operations, annual rewards could increase to approximately $270 million.
Second Only to Strategy
With cryptocurrency holdings valued at nearly $10 billion, including its Ethereum reserves and 204 BTC, Bitmine ranks among the largest corporate holders of digital assets.
The company trails only Strategy, which has maintained its aggressive Bitcoin accumulation approach despite briefly selling a small portion of its holdings earlier this year.
Strategy recently announced another $100 million Bitcoin purchase, bringing its total Bitcoin holdings to an estimated value of around $56 billion.
As Bitmine pushes closer to owning 5 percent of Ethereum’s supply, its growing commitment highlights the increasing role institutional players are beginning to assume within the Ethereum ecosystem.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
