BitMine Immersion Technologies just bought another $200 million worth of Ethereum, pushing its total crypto holdings past $9 billion.
The company purchased 46,255 ETH tokens from BitGo this week, marking its second major buy in just five days.
This latest purchase brings BitMine’s total Ethereum stash to over 2.1 million tokens, worth roughly $9.24 billion. The Nevada-based company now holds the largest Ethereum treasury of any public company worldwide.
The “Alchemy of 5%” Strategy
BitMine’s aggressive buying follows what Chairman Tom Lee calls the “alchemy of 5%” strategy. The company wants to own 5% of all Ethereum tokens in existence.
Lee, who co-founded research firm Fundstrat, believes Ethereum is entering a “supercycle.” He points to Wall Street firms moving into blockchain technology and artificial intelligence creating new token economies.
“The power law benefits large holders of ETH, hence, we pursue the ‘alchemy of 5%’ of ETH,” Lee explained in a recent company announcement.
At current supply levels, owning 5% of Ethereum would mean controlling about 6.3 million tokens worth roughly $27 billion.
Stock Performance and Trading Volume
BitMine’s stock has jumped over 1,000% since late June when the company started its Ethereum buying spree. The shares now trade as one of the most active stocks in America, with daily trading volume averaging $1.7 billion.
This puts BitMine at #30 among all US-listed stocks by trading volume, sitting between Bank of America and Exxon Mobil according to company data.
Major investors have taken notice. Cathie Wood’s ARK Invest recently bought $182 million worth of BitMine shares. Other backers include Peter Thiel’s Founders Fund, Pantera Capital, and Galaxy Digital.
Revenue Through Staking
Unlike simply holding Ethereum, BitMine plans to “stake” its tokens to earn rewards. Staking means locking up tokens to help secure the Ethereum network in exchange for annual returns of 4-5%.
With over 2 million ETH tokens, this staking operation could generate around $100 million per year in income for BitMine. This turns the company from just a speculative crypto play into a business with steady cash flow.
Tom Lee compares this model to how oil companies get valued based on their reserves, not just current production. “Exxon was valued for the resources it controlled, a logic that now applies to crypto treasury companies,” he said in a recent interview.
Market Impact and Competition
BitMine’s buying has real effects on Ethereum’s price and availability. When large amounts get moved off exchanges into company treasuries, it reduces the supply available for trading. This creates upward pressure on prices.
Source: @BitMNR
The company now ranks as the world’s second-largest crypto treasury, trailing only Michael Saylor’s MicroStrategy, which holds about $71 billion worth of Bitcoin.
Other companies are following similar strategies. SharpLink Gaming holds about 837,000 ETH tokens, while smaller firms like Bit Digital and BTCS have also started building Ethereum reserves.
Industry data shows public companies now control over 2.78 million ETH tokens worth nearly $12 billion. This represents about 2.3% of all Ethereum in circulation.
Looking Ahead
BitMine still has $266 million in cash available for more Ethereum purchases. The company also announced a $20 million investment in Eightco Holdings as part of its “Moonshot” program to support Ethereum ecosystem projects.
Lee sees this as just the beginning of a major shift in how companies manage their cash reserves. He predicts Ethereum could reach $6,000 or higher as more institutions adopt similar strategies.
The regulatory environment also appears favorable. Recent SEC guidance on staking and the potential passage of crypto-friendly legislation could remove barriers for more companies to follow BitMine’s approach.
The Bottom Line
BitMine’s $201 million Ethereum purchase shows how seriously some companies now take cryptocurrency as a treasury asset. With over $9 billion in crypto holdings and backing from major investors, the company has positioned itself at the center of institutional crypto adoption.
Whether other companies will follow this aggressive strategy remains to be seen. But BitMine’s success so far suggests that treating Ethereum like a strategic reserve asset rather than just a speculative investment might be the future of corporate finance.
