BitMine Nears 5% of ETH Supply With $10B Holdings Despite Bear Market

BitMine Immersion Technologies continued to expand its Ether holdings last week, acquiring more of the second-biggest digital asset despite a prolonged market downturn as its large staking operation continues to generate yield.

On Monday, the crypto treasury company reported that it acquired 76,881 Ether (ETH) over the past week, potentially reducing its average cost basis as ETH briefly plunged below $1,600 during the period. The company has been steadily acquiring Ether during the bear market, regardless of price action.

BitMine now holds 5,620,754 ETH acquired at an average price of $1,718.

BitMine is sitting on large unrealized losses on its ETH holdings. Source: DropsTab

At current prices, the company’s ETH portfolio is worth roughly $10.2 billion, though it is sitting on an unrealized loss of nearly $9 billion, according to DropsTab data. At last look on Monday, Ether was trading at $1,843.69, according to CoinMarketCap data.

Bitmine’s latest purchases brings the company closer to its stated goal of owning 5% of Ether’s total circulating supply of 120.68 million tokens. The company currently controls approximately 4.66% of all ETH.

At the same time, BitMine has staked more than 4.1 million ETH, worth roughly $8.1 billion at current prices. Staking allows the company to earn protocol rewards by helping secure the Ethereum network, providing a recurring source of yield even during periods of price weakness.

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Ethereum faces structural headwinds

The crypto treasury model has come under pressure this year as digital asset prices retreated sharply. The downturn has also weighed on spot Ether exchange-traded funds (ETFs), which recorded four consecutive days of net outflows last week. 

Selling pressure has persisted since early May, with daily net outflows exceeding $60 million on several occasions.

BlackRock’s iShares Ethereum Trust ETF (ETHA) remains the biggest US-traded ETH ETF, with net assets of $4.75 billion. It holds 2.36% of the crypto’s circulating supply.

ETH’s decline has coincided with large outflows from spot ETFs. Source: SoSoValue

For Ethereum, however, the challenges extend beyond price action.

The network’s layer-2 scaling strategy, designed to deliver faster and cheaper transactions, has come under scrutiny. As more activity migrates to layer-2 networks, the Ethereum mainnet captures less transaction-fee revenue and burns less ETH, potentially weakening its deflationary dynamics.

Internal changes at the Ethereum Foundation have added to the uncertainty. At least nine senior leaders, researchers and core contributors have departed the nonprofit so far this year, marking one of the largest waves of talent attrition in its history. The departures have coincided with the foundation’s organizational overhaul and renewed community debate over its governance, strategic direction and role in Ethereum’s long-term development.

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