BitMine Acquires $110M Ethereum During Market Dip — Is the “Alchemy of 5%” on the Horizon?

BitMine Immersion Technologies has made headlines in the cryptocurrency sector by announcing substantial Ethereum acquisitions. The company has expanded its holdings amid market decline, aiming to secure 5% of Ethereum's total supply. This article explores the implications of their strategy, ongoing staking efforts, and the financial context surrounding their investments.

Key Takeaways

Ethereum Holdings: BitMine holds 4,203,036 ETH, valued at approximately $13.5 billion.
Market Performance: Ethereum has recently declined by 10.8% over the past week and 4.5% in the last 24 hours.
Supply Target: BitMine aims for 5% of Ethereum’s supply, equating to around 6.03 million ETH, with current holdings at 3.48%.
Staking Strategy: The company has staked 1,838,003 ETH and plans to initiate its own staking infrastructure by 2026.
Financial Growth: BitMine's total assets now stand at about $14.5 billion, including various cryptocurrency and stock investments.

bitmine ethereum

BitMine’s Ethereum Accumulation Efforts

BitMine Immersion Technologies has positioned itself prominently in the cryptocurrency landscape with a recent announcement regarding its Ethereum holdings. As of January 20, the New York-listed company reported that it now possesses 4,203,036 ETH, which is valued at approximately $13.5 billion based on recent market prices following continuous purchases amid weaker market conditions.

Currently, Ethereum price has dipped by 10.8% in the last week and is down by 4.5% over the past 24 hours, trading at about $2,966.44.

This update has reignited discussions about BitMine’s ambitious objective to own 5% of Ethereum's circulating supply, an initiative the company refers to as the “alchemy of 5%.”

Weekly ETH Purchases Bring BitMine Closer to Supply Target

The available data illustrates how close BitMine is to achieving its target of acquiring 5% of Ethereum’s circulating supply, which is estimated at around 120.7 million ETH. To reach this goal, which requires approximately 6.03 million ETH, BitMine currently holds about 3.48% of the total, needing roughly 1.8 million more ETH.

BitMine Holdings

At current prices near $3,000 per token, this remaining amount represents a capital requirement of several billion dollars, not including any potential market impacts.

According to company disclosures, BitMine has been actively purchasing ETH nearly every week since late October, including a notable acquisition of over 35,000 ETH in the week ending January 20. These strategic purchases occur alongside market volatility, underscoring the firm’s commitment to building a long-term position rather than pursuing short-term trading opportunities.

Chairman Tom Lee has characterized the strategy as beneficial to net asset value, emphasizing that the company does not plan to issue shares below its internal minimum net asset value (mNAV). This strategy appears to have garnered strong support among shareholders, as evident from a January 15 meeting in Las Vegas, where investors endorsed all four management proposals with approximately 81% of votes in favor.

BitMine Enhances Ethereum Staking and Strengthens Treasury

In addition to accumulating Ethereum, BitMine is actively staking its positions. As of January 19, the company had staked 1,838,003 ETH, equivalent to nearly $5.9 billion, a significant increase from just over 650,000 ETH earlier this month.

While the company currently relies on external providers for staking, it has plans to launch its own infrastructure, named the Made in America Validator Network (MAVAN), in early 2026.

With the current Ethereum staking rate averaging around 2.81%, BitMine estimates that a fully operational staking initiative could generate approximately $374 million in annual fees, equating to over $1 million every day, provided that network conditions remain consistent.

BitMine’s financial standing is now notable within the public company sphere, as its crypto assets, cash holdings, and speculative investments amount to about $14.5 billion. This total includes nearly $1 billion in cash, a smaller Bitcoin position of 193 BTC, and various equity investments, such as a recently announced $200 million investment in Beast Industries.

While this investment is not linked directly to the Ethereum strategy, it highlights BitMine’s broader objective to diversify its portfolio alongside its primary cryptocurrency holdings.

BitMine Financial Standing

In the wake of this announcement, BitMine's stock price is hovering just above $28, significantly lower than its peak mid-2025 valuation yet remains one of the most actively traded stocks in the U.S., with an average daily trading volume of around $1.5 billion.