BitMine on Verge of Dominating 5% of Ethereum Supply

BitMine Immersion Technologies (NASDAQ:BMNR) is rapidly approaching its goal of owning 5% of Ethereum's circulating supply, sparking questions about what will happen to demand once the target is reached.

The company has accumulated 5.81 million ETH worth nearly $11 billion at current prices, representing around 4.8% of Ethereum's circulating supply and putting it 96% of the way toward its stated goal after 14 months of purchases.

Tom Lee, co-founder of Fundstrat and chairman of BitMine, has described the strategy as the 'Alchemy of 5%', positioning BitMine as one of Ethereum's largest institutional stakeholders.

Unlike Strategy (NASDAQ:MSTR), which primarily holds Bitcoin, BitMine can put its Ethereum to work through staking operations. It has staked more than 5 million ETH, worth around $9.8 billion, at an estimated staking yield of 2.63%, generating annualized staking revenue of approximately $257 million.