Bitmine Nears 5% of Ethereum Supply Amid $8.4B Losses

Bitmine Immersion Technologies has continued to buy Ethereum, adding 9,926 ETH during the week ending Aug. 16. This brings its total Ether holdings to approximately 5.82 million ETH, about 4.8% of Ethereum's circulating supply. The company is now close to its long-term goal of owning 5% of Ethereum's total supply.

Bitmine's latest purchase comes despite the challenging market environment, which has resulted in unrealized losses of more than $8.4 billion on its ETH holdings. At a reference price of $1,893, Bitmine's Ether stake is valued at around $11 billion, although acquisition costs are significantly higher for a large portion of the position.

The company continues to generate protocol rewards through staking, with over 5 million ETH being staked. According to Tom Lee, this has resulted in an annualized staking yield of roughly $287 million, which can partially offset the unrealized drawdowns.