Tom Lee’s BitMine has continued its aggressive Ethereum accumulation, adding roughly 20,000 ETH in the latest on-chain tranche. This has brought the firm’s total Ether stash to about 4,371,497 ETH.
Market intelligence data show that a BitMine-tied address recorded an inflow following a prior 45,759 ETH purchase reported last week, bringing the firm’s ETH holdings to an estimated $8.68 billion in notional value.
At an average acquisition cost of $3,821 per ETH, BitMine’s position shows an unrealized paper loss of roughly $8.03 billion at the current market price of $1,975.25. Ethereum currently trades 2% higher than last week’s price, having tested the $2,100 resistance earlier in the week.
BitMine’s Ethereum Accumulation Strategy and Scale
BitMine’s buying behavior is reminiscent of that of Strategy and ABTC, although both firms use different treasury vehicles. Another way BitMine differs from both firms and most firms building treasuries out of digital assets is that it puts its Ethereum to use rather than simply accumulating it.
Company disclosures show about 3.04 million ETH are already staked (roughly 69% of its holdings), valued at about $6.1 billion at recent prices. BitMine has reported short-term staking yields as high as 3.32% annualized in recent snapshots. Its SEC filings cite a composite staking reference rate of approximately 2.81%, which BitMine says would generate roughly $374 million per year at full scale.
For additional perspective, independent staking trackers place typical ETH staking yields in the 3%–5% band today, so BitMine’s reported performance sits squarely within current on-chain economics.
While staking rewards do not eliminate the losses from price declines at BitMine’s $3,821 average cost, they create a yield stream that gradually lowers the firm’s effective cost basis. Instead of simply waiting for price recovery, staking converts a dormant asset into a productive one, compounding ETH holdings during downturns.
Possible Implications and Market Realities
Holding around 4.37 ETH, about 4% of the total supply, places BitMine among the largest concentrated holders outside protocol foundations and major exchange custody. Since most of that allocation is staked, BitMine’s ETH concentration is bound to affect market dynamics.
Staking reduces immediate liquidity and creates an income stream that can offset financing costs or operational expenses, but it also lengthens the time to exit if price or regulatory conditions require repositioning.
Nevertheless, Ethereum still trades at a major decline from historic levels. For example, at $1,975.25, ETH is down almost 39% from last month and over 60% from its ATH. Meanwhile, analysts predict a further drop to $1,400 if current support structures fail to hold.
Temitope Olajide
Evans Kelvin
