Bitmine's Aggressive Ethereum Buying May Not Be Enough for 5% Ownership

Bitmine, a Nasdaq-listed treasury company, continues to buy Ethereum (ETH) despite having already staked over 5 million tokens worth of ETH. Its latest purchase on September 1 added another 51,000 ETH worth around $126 million, taking its total holdings to approximately 5.95 million.

This acquisition brings Bitmine closer to its publicly stated goal of owning 5% of the Ethereum supply, which is currently estimated at 120.7 million tokens.

However, staking rewards could become a significant factor in helping Bitmine reach its target without needing additional purchases. With over 5 million ETH already staked and an annualized yield of 2.67%, the company can expect around $135,000 in staking rewards per year.

The impact of staking rewards on Bitmine's ability to meet its ownership goal is significant, especially considering that retaining just 61% of one year's modeled rewards would be enough to close the gap between its current holdings and the 5% target under a flat supply scenario.