Bitmine Pushes Ahead with ETH Purchases Amid Staking Rewards Growth
Bitmine, a Nasdaq-listed treasury company, has continued to purchase Ethereum (ETH) despite its existing position being sufficient to reach its publicly stated goal of owning 5% of the token. According to blockchain analysis platform Lookonchain, wallets linked to Bitmine acquired another 51,000 ETH worth around $126 million from FalconX and BitGo on September 1.
This purchase would bring Bitmine's holdings to roughly 5.95 million ETH, putting it close to its target of owning 6.035 million tokens, which is equivalent to 5% of the total supply.
However, staking income has become a significant factor in Bitmine's ability to reach its goal without further purchases. With over 5.06 million ETH already staked at an annualized seven-day yield of 2.67%, Bitmine can earn around 135,000 ETH in staking rewards over a modeled year.
The size of the company's existing position means that buying may no longer be the only way to get to its goal. In fact, staking income itself can become a major acquisition engine, and Bitmine can continue buying aggressively while becoming progressively less dependent on those purchases.