BitMine Buys $92M in Ethereum, Holds 4.7% of Supply
BitMine purchased 52,203 ETH worth about $92 million last week, raising holdings to 5,672,956 ETH, roughly 4.7% of circulating supply and near its 5% target.
BitMine Immersion Technologies purchased 52,203 Ethereum tokens last week for about $92 million, bringing its total Ethereum holdings to 5,672,956 ETH. That total represents roughly 4.7% of the circulating supply and is about 94% of the firm’s stated goal to hold 5%.
The acquisition followed BitMine’s dividend-paying preferred equity offering, BMNP, which began trading on the New York Stock Exchange last week. The offering raised about $274 million to support additional Ethereum purchases and to expand the company’s staking infrastructure. BMNP opened at $85 per share and was trading near $88.34 in early trading. BitMine’s common shares, BMNR, traded around $16.22, up about 0.4% on Monday.
On its balance sheet, BitMine reports 5,672,956 ETH, valued at roughly $10 billion, and 205 Bitcoin, listed at about $13.3 million. The company stakes more than 4.7 million ETH-around 83% of its treasury-through its Made in America Validator Network. BitMine projects that staking the entire treasury could generate about $268 million in annualized revenue. Current Ethereum staking rewards range from about 1.7% to 3.2% APY.
Ethereum traded around $1,752 on Monday, up about 1.6% in the previous 24 hours and well below its August peak near $4,946. BitMine’s common stock remains far below earlier highs, trading nearly 90% under its 52-week high of $161. Preferred share programs for some large cryptocurrency firms have traded below par in the past, prompting investor questions about how dividend payments will be funded. BitMine indicated it may use revenue from staking to help cover preferred dividends.
Chairman Tom Lee commented, ‘The best years for crypto remain ahead, in our view. Tokenization and the rapid progress in AI are expected to drive exponential demand growth for blockchain and decentralized crypto.’
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