BitMine Buys 126,971 ETH as Tom Lee Calls Selloff ‘Superficial’
BitMine bought 126,971 ETH (about $214M), lifting its treasury to 5,543,872 ETH. Chairman Tom Lee called the recent crypto selloff “superficial.”
BitMine Immersion Technologies purchased 126,971 ETH last week, roughly $214 million at the time of the trade, bringing its Ethereum holdings to 5,543,872 ETH. The company values that treasury at about $9.3 billion.
The purchase followed what BitMine described as a strengthening case for Ethereum after the AI-assisted discovery of a vulnerability in the Zcash privacy protocol. The ZEC token fell about 40% on the news before partially recovering. Ethereum touched about $1,522 late last week and later traded near $1,686, down roughly 15% for the week but up about 4% in the past 24 hours.
Chairman Tom Lee called the selloff “superficial.” In a statement he wrote: “The broad selloff in crypto, in our view, is a superficial take. AI systems are going to find flaws in centralized financial services rails and weak decentralized protocols. We believe this actually strengthens the use case and product market fit for hardened and reliable decentralized blockchains like Ethereum.”
About 85% of BitMine’s ETH balance is currently staked through its Made-in-America Validator Network (MAVAN). The company projects staking income of roughly $230 million per year on the staked portion and estimates annualized staking rewards of about $270 million if it were to stake its entire balance. BitMine describes MAVAN as its domestic validator infrastructure that secures staked ETH and produces rewards for the treasury.
BitMine also expanded a Series A Perpetual Preferred Stock offering, increasing the size to 3.5 million shares at $80 per share, up from an initial 3 million-share plan. The company expects to net about $274 million after fees, with the preferred shares carrying a 9.5% annual dividend. The sale is slated to close on June 10, subject to customary conditions, and the company said proceeds are intended to support further ETH purchases and other corporate purposes.
Recent market moves widened unrealized losses on BitMine’s Ethereum position, which the company says now carries several billion dollars in paper losses following the price slide. BitMine continues to emphasize long-term staking yield and accumulation of ETH as part of its treasury-management model.
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