Bitmine bought about $70 million worth of Ethereum on Tuesday, adding 40,000 ETH to one of the largest corporate crypto treasuries in the market, according to blockchain analytics firm Lookonchain.
The purchase was carried out through two wallet addresses, with on-chain data showing transfers linked to hot wallets at FalconX and another trading platform. The latest acquisition brings Bitmine’s Ethereum holdings to about 5.74 million ETH, based on the company’s most recent disclosure on Monday.
That total represents roughly 4.8% of Ethereum’s circulating supply, putting the company close to its stated target of holding 5% of all ETH in circulation. The scale of the position has made Bitmine one of the most closely watched public companies tied to Ethereum, particularly at a time when the token remains well below its previous record high.
Ethereum traded near $1,752 on Tuesday, far below its all-time high of $4,950 recorded in August last year. At that price, Bitmine’s latest 40,000 ETH purchase is valued at about $70 million.
Bitmine shares fell 4.8% on Tuesday to close at $14.80, even as the company expanded its crypto holdings. The stock’s decline showed that traders did not immediately reward the latest accumulation, and that the company’s share price continues to face pressure from wider equity-market conditions and the uncertain outlook for digital assets.
The company was added to the Russell 1000 Index on June 26, a development that can increase visibility among traditional market traders and funds that track major U.S. equity benchmarks.
Bitmine moves closer to its 5% Ethereum target
Bitmine’s latest purchase is part of a broader Ethereum accumulation strategy that has continued despite weaker market conditions. The company has repeatedly signaled that it wants to build a position equal to 5% of Ethereum’s circulating supply.
With 5.74 million ETH now reported on its balance sheet, Bitmine is approaching that threshold. Ethereum’s circulating supply is roughly 120 million ETH, meaning a 5% position would require about 6 million ETH. The latest acquisition narrows the remaining gap to roughly 260,000 ETH, depending on changes in supply and future company disclosures.
The company’s latest portfolio was valued at $11.1 billion as of June 28, including both crypto holdings and cash reserves. Most of that value is tied to Ethereum, which remains the central asset in Bitmine’s treasury strategy.
Corporate accumulation of digital assets has become a more visible market theme in recent years. Some public companies have used Bitcoin as their main reserve asset, while Bitmine has focused on Ethereum. That distinction matters because Ethereum offers staking income, smart contract exposure and a different risk profile from Bitcoin.
For traders, Bitmine’s holdings are important not only because of their size, but also because of their concentration. A single public company controlling nearly 5% of Ethereum’s circulating supply can affect how the market interprets large transfers, staking flows and treasury disclosures.
Still, holding a large amount of ETH does not guarantee stock-market gains. Bitmine’s share-price decline on Tuesday showed that traders continue to assess the company on more than just the size of its crypto balance sheet. Issues such as financing costs, dividend obligations, valuation, liquidity and broader risk appetite can all influence the stock.
Most of the Ethereum position is staked
Bitmine is not simply holding Ethereum in inactive wallets. According to the company’s latest figures, about 4,879,157 ETH are staked through MAVAN, its Made in America Validator Network.
That represents roughly 85% of the company’s total Ethereum position. Staking allows Ethereum holders to help secure the network and earn rewards in return. Since Ethereum shifted from proof of work to proof of stake, validators have played a central role in transaction processing and network security.
For Bitmine, staking gives its Ethereum holdings a yield-generating function. Rather than relying only on price appreciation, the company can earn ETH-denominated rewards from the portion of its holdings committed to validation.
Based on current staking yields, the staked position is projected to generate an estimated $235 million in annualized revenue. That revenue may help support company obligations, including the 9.5% dividend on its preferred stock.
The company’s staking strategy also introduces operational considerations. Large-scale staking requires infrastructure, security controls, validator management and careful handling of withdrawal processes. Any company staking millions of ETH faces technical and custodial risks, even when the underlying activity is common across the Ethereum network.
The scale of Bitmine’s staking also gives traders another metric to watch. Changes in the amount of ETH the company stakes, unstakes or transfers could influence perceptions of its liquidity needs and long-term commitment to Ethereum.
Ethereum remains far below its record high
Bitmine’s purchase came while Ethereum remained under pressure compared with its previous peak. The token traded around $1,752 on Tuesday, less than half of its all-time high of $4,950.
The gap between current prices and the record high remains a key part of the market backdrop. For traders who are bullish on Ethereum, lower prices can be viewed as an opportunity to build exposure before a potential recovery. For more cautious traders, the same price action highlights the risk that large corporate treasuries can face when digital assets remain volatile.
Ethereum’s price has also moved unevenly in recent weeks. The token rebounded about 15% over five days in early July after falling to around $1,500. Some market watchers have linked the move to stronger demand from large holders, including corporate buyers, though price action in Ethereum is influenced by many factors at the same time.
Those factors include network activity, staking trends, ETF flows, macroeconomic expectations, liquidity conditions and sentiment across the wider cryptocurrency market. Ethereum can also be affected by regulatory developments and changes in demand for decentralized finance, stablecoins, tokenized assets and layer-2 networks.
The latest Bitmine purchase therefore landed in a mixed environment. The company continues to accumulate, but the broader market has not returned to the enthusiasm seen during Ethereum’s strongest bull-market phases.
Market sentiment remains fragile
The wider crypto market has shown signs of weakness, particularly after spot Bitcoin ETFs recorded about $4.5 billion in net outflows during June 2026. Large ETF outflows can weigh on sentiment because they suggest reduced demand from traditional market channels.
Although Bitcoin ETF flows do not directly measure Ethereum demand, they can influence the overall tone of the crypto market. When traders pull capital from major crypto products, risk appetite across digital assets can weaken. Ethereum often moves in response to broad market liquidity, even when its own fundamentals differ from Bitcoin’s.
Bitmine’s continued Ethereum buying therefore stands out because it runs against a cautious market backdrop. The company is expanding its position at a time when many traders remain selective and price momentum has been uneven.
Chairman Thomas Lee has described the market as being in the early stages of a “crypto spring,” a phrase suggesting that he expects conditions to improve after a difficult period. That view helps explain why the company has continued buying through volatility rather than waiting for a clearer recovery.
Still, traders are likely to focus on whether the strategy can produce durable value. A large Ethereum treasury can benefit from a rising ETH price, but it can also increase balance-sheet volatility when prices fall. The same exposure that can boost returns in a recovery can become a source of pressure during a downturn.
Large-wallet data points to accumulation
On-chain data has shown a mixed picture for Ethereum. Activity among some users has weakened, with the number of active Ethereum addresses falling to low levels. Lower address activity can signal reduced engagement on the network, though the metric can be affected by changes in how users interact with wallets, layer-2 networks and exchanges.
At the same time, Glassnode data cited in the market discussion showed a sharp increase at the end of June in wallets holding between 1,000 and 10,000 ETH. That suggests accumulation by large holders, even as some activity indicators appear weaker.
This split is important. A decline in active addresses can point to softer retail or transactional activity, while growth in large balances can suggest that wealthier trading entities, funds, companies or long-term holders are increasing exposure.
Bitmine’s purchase fits into that second category. The company is adding Ethereum in size and has now built a treasury that is large enough to be visible across market structure discussions.
For traders, the combination of lower network activity and large-holder accumulation creates an uncertain signal. It may show that conviction is building among major holders before broader activity returns, or it may show that large buyers are taking positions despite weak current usage trends.
Stock performance has not matched the accumulation pace
Bitmine’s shares closed at $14.80 on Tuesday after falling 4.8% on the day of the Ethereum purchase. The decline highlights a disconnect between the company’s accumulation strategy and its stock-market performance.
The stock has traded well below its 200-day moving average, indicating continued weakness compared with its longer-term trend. That performance suggests traders are not valuing the company solely on the size of its Ethereum holdings.
Public companies with large crypto treasuries often trade differently from the tokens they hold. Their share prices can reflect balance-sheet exposure, but also management decisions, capital structure, debt, preferred stock obligations, operating costs and broader equity-market sentiment.
Bitmine’s preferred stock dividend, set at 9.5%, is one factor traders may assess alongside staking income. If staking rewards remain strong and Ethereum prices stabilize or rise, that income could support the company’s financial structure. If ETH prices fall or staking yields decline, the company may face a tougher environment.
The company’s addition to the Russell 1000 Index could improve its profile among equity traders. Inclusion in a major index can create demand from index-tracking products and increase coverage from market watchers. However, index inclusion does not remove the risks tied to crypto exposure or guarantee stronger share-price performance.
Ethereum upgrade remains on the radar
Traders are also watching Ethereum’s upcoming “Glamsterdam” upgrade, which is expected to focus on improving processing speeds and data handling. Network upgrades are closely followed because they can affect fees, scalability, validator operations and the broader user experience.
Ethereum has undergone several major upgrades in recent years, including the shift to proof of stake and later improvements designed to support scaling through layer-2 networks. Each upgrade has shaped how traders think about the network’s long-term role in crypto markets.
The Glamsterdam upgrade could become another test of Ethereum’s ability to improve performance while maintaining network security and decentralization. If successful, it may strengthen the case for Ethereum as infrastructure for decentralized applications, tokenized assets and financial settlement.
For Bitmine, any improvement in Ethereum’s long-term outlook is directly relevant. The company’s balance sheet, staking income and market narrative are closely tied to ETH. A stronger Ethereum network could support its strategy, while delays or technical concerns could add uncertainty.
What traders are watching now
Bitmine’s latest Ethereum purchase gives traders several areas to monitor in the coming weeks. The most immediate is whether the company continues buying until it reaches its 5% supply target. Further purchases would likely draw attention from on-chain analysts and could influence market sentiment if they occur during periods of low liquidity.
Traders will also watch Ethereum’s price action around recent support levels. The rebound from $1,500 to around $1,752 showed some recovery, but the token remains far below its record high. A sustained move higher could improve the market value of Bitmine’s holdings, while renewed weakness could deepen concerns about treasury volatility.
Staking activity is another key signal. Because about 85% of Bitmine’s ETH is staked, any major change in that amount could raise questions about strategy, liquidity or risk management. Continued staking would suggest a long-term approach, while unstaking could be examined for signs of a shift.
ETF flows, large-wallet balances, active-address trends and crypto-related equity performance are also likely to remain important. These indicators can show whether demand is broadening or whether accumulation is concentrated among a smaller group of large holders.
For now, Bitmine has made clear that it is continuing to build one of the largest Ethereum positions in the public markets. The company is close to its 5% supply goal, most of its ETH is staked, and its strategy remains tied to the belief that Ethereum will recover from current levels.
The market response, however, remains cautious. Ethereum is still trading well below its peak, crypto sentiment is uneven, and Bitmine’s stock fell on the same day it announced another major purchase. That contrast captures the central question facing traders: whether Bitmine’s aggressive Ethereum strategy will be rewarded over time, or whether the risks of holding such a large and concentrated crypto position will continue to weigh on its valuation.
Curious about ETH’s upside after Bitmine’s massive buy? See Toobit’s outlook in this Ethereum and Solana 2025 performance forecast.
Disclaimer: The content on this page is provided for general informational purposes only and does not represent the views or financial advice of Toobit. We make no guarantees regarding the accuracy or completeness of this information and shall not be held liable for any errors, omissions, or outcomes resulting from its use. Investing in digital assets involves risk; users should independently evaluate their financial situation and the risks involved. For further details, please consult our Terms of Service and Risk Disclosure.
