Bitmine Closes In on 5% Ethereum Ownership Target
Bitmine is on track to reach its goal of owning 5% of Ethereum (ETH) despite recent buying sprees. The Nasdaq-listed treasury company revealed it acquired 53,501 ETH from August 23-30, bringing its total holdings to 5.9 million tokens. This represents a significant increase in its existing stake of 5.06 million ETH.
The staked balance earns an annualized seven-day yield of 2.67%, which translates to roughly 135,000 ETH in rewards over a modeled year. If Bitmine retains nearly all these rewards, it could reach its 5% target without needing additional purchases.
However, the company's management agreement with Ethereum Tower includes reward-linked compensation and infrastructure costs, which may require selling some of its staking rewards to meet these obligations. This highlights a key challenge for Bitmine as it navigates the path to reaching its 5% ownership goal.