BitMine Snaps Up Largest Week of ETH Purchases Amid Market Downturn

BitMine, a firm known for its aggressive Ethereum (ETH) accumulation strategy, has made its largest single-week purchase of the year so far. The company bought approximately 126,971 ETH during the week ending June 8, at an average price of around $1,700 per coin.

This move comes as Ethereum hit its lowest price in more than a year on June 6, reaching about $1,522. BitMine Chairman Thomas Lee attributed the broader crypto decline to a specific event - AI systems discovering vulnerabilities in weaker protocols like Zcash (ZEC) - rather than any deterioration in Ethereum's fundamentals.

The purchase brings BitMine's total ETH holdings to over 5.5 million coins, worth around $9.3 billion at current prices. The firm now holds approximately 4.59% of ETH's total circulating supply and has staked nearly 85% of its ETH through the Made in America Validator Network (MAVAN), generating projected annualized staking revenue of about $230 million.

BitMine plans to issue a Series A Perpetual Preferred Stock with an 9.5% annual dividend, which will provide additional funds for future ETH purchases and general business expenses. The preferred stock offering has been upsized from 3 million to 3.5 million shares at $80 per share.