Bitmine's ETH Accumulation
Bitmine Nears 5% Ethereum Supply Target, Boosts $10.4B Treasury
Key Points
Bitmine said its 9.50% Series A Perpetual Preferred Stock would begin trading on the NYSE under the ticker “BMNP” on June 16, paying weekly cash dividends—part of what Chairman Tom Lee called “good balance sheet diversification.”
Chairman Thomas Lee told investors Bitmine expects to cross its 5% “Alchemy of 5%” threshold sometime this year.
Bitmine disclosed detailed staking economics: with 4,718,677 ETH staked, it projected annualized staking rewards of about $219 million and estimated annualized staking revenue at about $226 million, based on a 7-day yield of 2.79%.
A separate analysis tied Bitmine’s buying to tighter spot liquidity, noting exchange-held ETH had fallen to a record low of 14.5 million—supporting the view that persistent treasury purchases could matter more when readily available supply is constrained.
According to DropsTab data cited in reporting, Bitmine’s average cost basis for its ETH holdings was about $1,718 per ETH, with the portfolio showing an unrealized loss of nearly $9 billion even though the ETH stake was valued around $10.2–$10.4 billion at current prices.
Bitmine Immersion Technologies now holds 5,620,754 ETH — worth roughly $10.4 billion — after buying 76,881 tokens in a single week during a crypto downturn, according to FinanceFeeds. That stake equals 4.66% of all Ethereum in circulation, putting the company within striking distance of its self-declared 5% target.
The disclosure hit markets on June 15 and coincided with ETH jumping to a one-week high. Shares of Bitmine's NYSE-listed stock, BMNR, rose 6.7% the same day, according to TS2 Tech. Chairman Tom Lee — co-founder of research firm Fundstrat — called the moment the "early stages of crypto spring."
How Bitmine Built a $10 Billion ETH Pile
Bitmine started its Ethereum buying push in June 2025 with a $250 million capital raise. Chairman Lee set out a vision he calls the "Alchemy of 5%" — owning 5% of ETH's total circulating supply. He told investors the company expects to cross that threshold sometime this year, according to Crypto Economy.
The company's average purchase price is about $1,718 per ETH, according to CoinTribune. Because ETH has traded well below that level recently, Bitmine is sitting on an unrealized loss of nearly $9 billion. Even so, the company kept buying through the weakness, adding its latest 76,881 ETH batch between June 8 and 12.
Staking Turns the Treasury Into a Yield Machine
Bitmine has staked 4,718,677 of its ETH tokens through its own validator network, called MAVAN — short for Made in America Validator Network. Staking means locking tokens to help run the Ethereum blockchain in exchange for rewards. At a 7-day yield of 2.79%, the company projects annualized staking revenue of about $226 million, according to MEXC.
That yield matters because it gives Bitmine a way to generate cash even when crypto prices are flat. It also helps cover the cost of the company's new preferred stock, which pays a 9.50% annual dividend. Critics worry, though, that staked ETH is locked up and cannot be quickly sold — making that part of the treasury less liquid if the company ever needs cash fast.
Bitmine Raises $274 Million With a New Stock on the NYSE
To fund continued buying, Bitmine closed a $274 million sale of 9.50% Series A Perpetual Preferred Stock on June 10. The new ticker, "BMNP," was set to begin trading on the NYSE on June 16. Lee called it "good balance sheet diversification," framing the offering as a bridge between traditional fixed-income investors and Ethereum exposure, according to TS2 Tech.
The offering attracted backing from firms including ARK Invest, Founders Fund, Pantera Capital, Galaxy Digital, and Digital Currency Group. BMNR has become the 203rd most traded stock in the U.S., averaging $550 million in daily volume. Investors increasingly treat the stock as a leveraged ETH proxy rather than a mining company.
Record-Low ETH Supply on Exchanges Amplifies Bitmine's Impact
Bitmine's buying is landing at a sensitive moment for ETH markets. The amount of ETH sitting on exchanges has fallen to a record low of 14.5 million tokens, according to MEXC. When Bitmine buys and stakes tokens, it effectively removes them from the pool of ETH available for others to buy or sell — tightening supply even further.
Some observers question where the next wave of ETH demand will come from once Bitmine slows its buying near the 5% goal. Others argue the supply crunch itself is the story. If Bitmine keeps absorbing exchange liquidity at its current pace, even modest new demand could push prices sharply higher — a dynamic that appears to be playing out already this week, according to CoinTribune.
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