BitMine Sees No Need to Sell Ethereum Amid Strong Staking Rewards

BitMine Immersion Technologies Inc. chairman Tom Lee stated that the company will not need to sell its Ethereum (ETH) holdings due to the staking rewards, which cover roughly $30 million to $35 million in annual preferred dividends.

The staking rewards are estimated at around $300 million a year at current prices, while BitMine's annual dividend burden is about $30-35 million. This means that the company has no reason to sell its ETH due to financial necessity.

Lee also mentioned that it would make sense for enterprises to start holding ETH and that BitMine will revisit this question next year. The company currently holds 5,815,164 ETH, or about 4.8% of supply, but is short around $350 million worth of Ethereum from reaching its target of 5%.

Lee estimated that staking rewards alone are worth more than 100,000 ETH a year, so around 80,000 ETH have to be purchased outright. The company was expected to reassess how quickly it would buy Ethereum in September and may have bought up to 5% if the Digital Market Asset Clarity Act (CLARITY Act) had passed.

Lee also predicted that Ethereum's price should be above $5,000 on a new bull cycle alone and could easily go above $10,000 within one to two years once tokenization and AI-driven demand are layered in. The current price of ETH is up by 2% during the past 24 hours.