BitMine's $11.8 Billion ETH Reserve Fuels Centralization Concerns
BitMine, an Ethereum treasury company led by Tom Lee, has reached a significant milestone in its accumulation of Ether (ETH). With over 5.79 million ETH in reserve, representing 4.8% of the total circulating supply, BitMine has crossed a symbolic threshold.
The majority of these ethers, approximately 85%, are staked, which means they're locked up to run validators that help secure the Ethereum network and earn an annual yield. This translates to around $254 million in revenue per year for BitMine, according to its own data.
This concentration of power has raised concerns about centralization on the Ethereum network. With approximately 40.9 million ETH staked across the entire network, or 33.56% of the total supply, BitMine's 4.92 million staked ethers represent around 12% of all Ethereum staking.
Compared to other major players in the market, such as Lido (22%), Binance (9.15%), and Coinbase (5.12%), BitMine has risen above two of the largest centralized exchanges based on this criterion in just a few months.