BitMine's Ethereum Holdings Reach 5.82M ETH, Closing In on 5% Supply Target

Ethereum News

BitMine Immersion Technologies expanded its Ethereum holdings to 5,815,164 ETH during the week ended Aug. 16, adding 9,926 ETH even as its stock-buyback activity slowed. The latest investor-relations disclosure shows the company's position now equals about 4.8% of circulating supply, placing it within striking distance of its stated goal to own 5% of all Ethereum. Weekly share repurchases fell to 1.7 million shares, the lowest pace since the buyback program began in July and the third consecutive decline. Total crypto, cash and other investments stood at $11.4 billion, down from $11.6 billion a week earlier, with Ether valued at $1,893 per token versus $1,928 previously. BitMine said it has bought Ethereum every week since launching its treasury strategy in June 2025.

Lido contributors are urging Ethereum developers to rethink EIP-8363, a proposal imposing a tapered issuance curve for the network. Validator rewards from issuance would face higher deductions or burns as staking participation rises, before being neutralized at a fixed saturation level. In an Aug. 14 comment, they argued the community lacks enough time to assess economic, decentralization and DeFi risks, including effects on automated market makers, before the Hegota upgrade's PFI deadline. They warned independent validators could become unprofitable if net yields approach zero, while large custodians and institutions may keep staking as part of broader product and regulatory strategies, potentially concentrating control. On-chain data shows staked ETH has exceeded 42 million, or more than 34% of supply. Lido, the largest staking provider, holds 8.83 million staked ETH and a 20.9% market share, while Sharplink plans to stake $200 million in ETH through Lido.

BitMine's accumulation has continued despite a deeply negative position. Industry data tracking the company's treasury puts unrealized losses on its Ethereum holdings at more than $8.4 billion, with the portfolio down about 43% from its cost basis. The company disclosed that it is staking more than 5 million ETH, worth roughly $9.6 billion at current prices, through its validator network. Using a seven-day staking yield of 2.61%, BitMine projects annualized staking rewards of about $287 million, according to Chairman Tom Lee. The staking income provides a recurring source of yield even while Ether trades well below its all-time high and below levels where much of the treasury was acquired. BitMine's persistent weekly purchases through a prolonged bear market highlight the firm's conviction in its long-term treasury strategy.

Tom Lee, who chairs BitMine, said the latest purchase puts the company 96% of the way toward its self-described Alchemy of 5% target. The goal was set when BitMine began buying Ethereum weekly 14 months ago. Lee framed continued accumulation as a structural bet, noting that Ethereum's price ratio against Bitcoin has moved above a multi-year downtrend and that tokenization and agentic-AI applications are beginning to materialize. He added that easing financial conditions should act as a tailwind for crypto. The company's balance sheet also includes 210 Bitcoin, cash and securities of $78 million, a $180 million stake in Beast Industries and a $73 million position in Eightco Holdings. Earlier purchases include two roughly $235 million acquisitions in April, one being 10,000 ETH bought directly from the Ethereum Foundation, followed by $214 million in June and $49 million in July.

Staking is central to BitMine's model: approximately 87% of its Ethereum reserve is currently staked, with 5,067,309 ETH deployed through the MAVAN validator network. The company notes that its staking-income outlook is an annualized projection based on current performance rather than realized profit, leaving room for variance from price and network conditions. At the same time, the firm continues to return capital to shareholders, repurchasing 1.7 million shares in the latest week and bringing total buybacks since July to 20.8 million shares under a $4 billion program. Based on 120.7 million ETH circulating, the 5% threshold equals about 6.04 million ETH, leaving BitMine roughly 220,000 ETH short of the target. The dual approach creates sensitivity to Ether's price swings, but also gives the treasury a yield component independent of short-term market direction.

COINOTAG's proprietary 42-indicator composite scoring engine rates the $1,930 resistance on the altcoin at 78/100, driven by the confluence of the Bollinger Band upper and Donchian upper levels. On the downside, the engine scores the $1,886 support at 66/100, backed by the SMA 20 and Value Area Low. With RSI at 55.45 and a bearish MACD signal, the broader trend remains sideways. Derivatives data shows funding at 0.0038%, open interest near $7.81 billion, and a long/short account ratio of 1.76, with 63.8% of accounts long, suggesting mild bullish positioning. The Fear and Greed index at 31 caps enthusiasm. A close above $1,930 would open a run toward $2,048, while a break under $1,886 would invalidate the constructive case.