BitMine Races to 5% Ether Supply Target as Staking Revenue Soars

BitMine Immersion Technologies, the Ethereum treasury company, may reach its goal of holding 5% of Ether's supply within weeks. According to a review of BitMine's 12 weekly updates from July 13 through September 28, the company has been purchasing around 21,600 ETH per week, averaging about 259,000 ETH in total.

This brings their current holding to approximately 6,001,302 ETH, which is equivalent to 4.9% of Ether's supply. To reach the 5% target, BitMine needs to acquire an additional 103,700 ETH. If it maintains its current buying pace, it will close this gap in about 4.8 weeks.

BitMine Chairman Tom Lee discussed the company's strategy in an August interview with Bankless. He stated that holding more than 5% of Ether's supply might be justified if Ethereum's use expands and more enterprises begin to hold ETH. However, he also mentioned that BitMine would likely revisit this question in 2027.

Lee explained that if the company decides to remain at around 5%, it could sell the Ether generated from staking rewards to prevent its share of supply from increasing. He emphasized that BitMine does not need to sell ETH for cash management and will instead find productive ways to use its holdings. Additionally, Lee mentioned that MAVAN, BitMine's institutional staking platform, is handling more than $2 billion in crypto from outside clients as the company expands beyond accumulating Ether.

In July, BitMine reported generating $45.7 million from Ether staking and validation in the quarter ended May 31, accounting for 98% of its total revenue of $46.5 million.