Bitmine purchased another 52,203 ETH worth around $90 million, bringing its holdings to 4.7% of the total Ethereum supply.
summary
- Bitmine purchased 52,203 ETH worth about $90 million, bringing its holdings to 4.7% of Ethereum’s supply.
- Tom Lee said the company remains close to its 5% ETH ownership target despite the challenging market conditions.
- Staked ETH has increased its expected annual revenue to $223 million, with potential rewards reaching $268 million.
According to a company update issued on Monday, Bitmine’s recent purchase increases its exposure to Ethereum despite ongoing weakness in the broader cryptocurrency market and repeated rejections at key price levels for the asset.
The company said its balance sheet now includes approximately $10.7 billion in crypto assets, cash, marketable securities and strategic investments, including stakes in Eightco and Beast Industries. With the completion of its latest acquisition, Bitmine remains one of the largest holders of Ethereum.
Commenting on the company’s outlook, Tom Lee, Chairman of Bitmine, said he expects tokenization and advances in artificial intelligence to drive future demand for blockchain networks and digital assets. Lee also reiterated his view that the cryptocurrency market is still in the early stages of what he previously described as the “crypto spring.”
Ethereum buying continues as holdings approach target
Less than a year after launching its Ethereum treasury strategy, Bitmine has accumulated enough ETH to control 4.7% of the asset’s supply, according to the company. The latest purchase leaves the company roughly 94% of the way toward its stated goal of holding 5% of all Ethereum.
Recent fundraising efforts have helped fund this expansion. Earlier, crypto.news I mentioned Bitmine’s board of directors has approved a cash dividend of $0.1056 per share to holders of its 9.50% Series A perpetual preferred stock, which trades on the New York Stock Exchange under the ticker BMNP.
The company said that the dividend will be distributed on July 10 to shareholders registered as of June 30.
The preferred stock offering was introduced in June to support the Ethereum treasury business, consisting of 3.5 million shares sold at $80 per share on June 10. Bitmine reported net revenue of about $273.8 million after fees and expenses.
At the time of the presentation, Lee stated that the proceeds would be used to fund additional purchases of Ethereum, while income generated from staking activities would help cover dividend payments.
Staking revenues rise despite unrealized losses
While Bitmine is still under public Ethereum status, the company has stated that staking has become a growing source of revenue.
According to Bitmine, 4,718,677 ETH worth over $8.2 billion has already been staked at current prices. Based on current revenues, the company said annual hedging revenues increased to about $223 million.
Providing additional predictions, Lee stated that annual staking rewards could rise to around $268 million once Bitmine’s Ethereum is fully staked by MAVAN and its partners. He attributed the estimate to a 2.73% seven-day BMNR return.
The latest numbers represent an increase from Lee’s previous estimate of roughly $219 million in annual bonuses, which he discussed when the preferred stock offering was announced.
Bitmine’s accumulation strategy continues to place it among the largest corporate holders of cryptocurrencies. According to the company, only Michael Saylor’s strategy currently has a larger treasury of cryptocurrencies.
Another strategy revealed Buy Bitcoin This week, it added 520 BTC to its reserves, although the acquisition was much smaller in dollar terms compared to Bitmine’s recent Ethereum purchase.
