What to know:
- Bitmine ETH holdings neared its 5% supply goal after a 27,801 ETH purchase this week.
- Bitmine staked 4.91M ETH, with annual staking revenue projected near $242M this year.
- Tom Lee said Robinhood Chain supports Ethereum through ETH gas and network settlement.
Bitmine ETH holdings have crossed 5.77 million ETH after the company bought 27,801 ETH in one week. The purchase pushed the treasury near its 5% supply target. Chairman Tom Lee said the goal remains in place for this year.
According to Bitmine’s latest update, the company now owns 5,770,038 ETH. Bitmine ETH holdings now equal about 4.8% of Ethereum’s circulating supply, based on the company’s latest disclosure. The network has roughly 120.7 million coins in circulation.
Also Read: Ethereum Price Analysis: Can Bulls Push ETH Beyond $1,926 Resistance?
How Bitmine’s Staked ETH Could Generate $242M in Revenue
Recent on-chain activity also showed fresh accumulation. Arkham Intelligence tracked a separate 40,000 ETH acquisition last week. This transaction was estimated at around $70 million and involved addresses related to FalconX and Kraken hot wallets.
This particular transaction has not been confirmed by Bitmine. Nonetheless, the firm has been releasing weekly reports about new Ethereum acquisitions. Additionally, it purchased 42,197 ETH in the period from June 29th to July 3rd.
Most of the firm’s treasury is locked up in staking. According to Bitmine, 4,917,189 ETH have been staked so far. These assets are estimated to generate staking revenue of about $242 million annually.
The latest filing revealed the average purchase price. Bitmine paid approximately $3,374 per ETH for the entire position. Bitmine ETH holdings are still under pressure since their prices are currently lower than the average cost.
What Drives Bitmine ETH Holdings Growth
DropsTab estimates that the firm is currently holding an unrealized loss of around $9.2 billion. However, Bitmine continues buying ETH, irrespective of the paper losses.
The approach differs from recent moves by some Bitcoin treasury firms. Strategy has been selling more than $200 million worth of Bitcoin around the same period. On the contrary, Bitmine increased its ETH exposure in the current reporting cycle.
Lee also tied up the future of Ethereum to Robinhood Chain. He explained that ETH is used as the native gas token for the network. Moreover, he explained that ETH was used for paying fees, and final settlements take place using the Ethereum network.
“Robinhood Chain uses ETH as the native gas token. And transaction fees are denominated in ETH, and the finality is settled on Ethereum.”
According to Lee, this brings in Ethereum into user activities. He said that Robinhood Chain had surpassed $1 billion in dollar-based trading volume. He noted that this indicated demand for the Ethereum ecosystem.
Why Investors Stayed Cautious
Meanwhile, separate market reports revealed that Robinhood Chain had made 7.6 million daily transactions. The network also beat Base in terms of daily transaction figures. Bitmine ETH holdings, therefore, come as Lee points to rising use across Ethereum-linked networks.
Investors remained cautious after the update. Yahoo Finance data shows that BMNR is currently trading at $14.45 after declining 3.54%. This comes even as the Bitmine ETH holdings were approaching the 5% company supply target.
Also Read: Robinhood Chain Drives Ethereum Sentiment While Phishing Scam Costs User $1M
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
Be the first to comment