BitMine Approaches 5% of ETH Supply as $10B ETH Holdings Grow

BitMine Immersion Technologies has continued adding to its Ethereum treasury holdings, purchasing a further 76,881 ETH over the past week despite a broader market slump. The incremental buys come as Ether recently dipped toward the $1,600 area, highlighting how the company is maintaining a steady accumulation strategy rather than waiting for a rebound.

In its latest update, BitMine reported that it now holds 5,620,754 ETH at an average acquisition price of $1,718. At the time of reporting, Ether was trading at $1,843.69, according to CoinMarketCap, placing the portfolio at roughly $10.2 billion in value. However, DropsTab data cited by the company’s update indicates the holdings still carry unrealized losses of nearly $9 billion relative to the average cost basis.

Key takeaways

• BitMine acquired 76,881 ETH in the past week, bringing total holdings to 5,620,754 ETH at an average price of $1,718.
• The treasury position is valued at roughly $10.2 billion at reported prices, but DropsTab data estimates unrealized losses near $9 billion.
• BitMine controls about 4.66% of Ether’s circulating supply, moving closer to its stated goal of owning 5% of the 120.68 million ETH in circulation.
• The company has staked more than 4.1 million ETH, generating ongoing protocol rewards that may help offset price volatility.
• Broader Ethereum headwinds include spot ETF outflows and questions around how layer-2 adoption affects mainnet fee burn and deflationary dynamics.

Steady accumulation in a weak tape

BitMine’s latest purchase extends a pattern of consistent Ether buying throughout the bear market. The company’s update notes that the week’s acquisition period may have included moments when ETH briefly traded below $1,600, according to Cointelegraph’s reference to market conditions during that time.

While the move has helped narrow BitMine’s average cost basis, the scale of its position means the overall portfolio remains exposed to large unrealized drawdowns. Even with Ether above the $1,700 average reported cost, DropsTab’s figures—referenced in the update—suggest losses are still substantial in absolute terms.

From an investor perspective, the key signal isn’t just the size of the buy, but the decision to continue accumulating during downturn conditions. Treasury-style strategies typically aim to reduce timing risk, yet they also require patience as mark-to-market losses can remain significant for extended periods.

Approaching the 5% supply target, with staking underneath

BitMine said its growing holdings bring it closer to a long-stated objective: owning 5% of Ether’s total circulating supply of 120.68 million tokens. Based on its current position, the company controls approximately 4.66% of all ETH.

In parallel with its spot accumulation, BitMine has staked more than 4.1 million ETH. Using the prices cited in the update, that staked amount is worth roughly $8.1 billion. Staking supports the Ethereum network by helping secure consensus and enables the company to receive protocol rewards, creating a recurring source of yield that can continue even when ETH prices weaken.

This matters because treasury models with staking components can partially decouple “yield generation” from “price appreciation.” Even if Ether’s market value declines, staking rewards may provide incremental performance, though they also come with staking-specific risks and lockups inherent to the system.

ETF outflows and their pressure on demand

Ethereum’s challenges this year are not limited to spot market weakness. The downturn has also weighed on spot Ether exchange-traded funds, which recorded four consecutive days of net outflows last week. CoinShares-style performance measures can vary by provider, but the article’s figures point to persistent selling pressure, including days where net outflows exceeded $60 million.

BlackRock’s iShares Ethereum Trust ETF (ETHA) remains the largest US-listed ETH ETF. According to the update referencing SoSoValue, ETHA has net assets of $4.75 billion and holds 2.36% of the crypto’s circulating supply. In practice, continued ETF outflows can reduce incremental, regulated demand at exactly the moment spot liquidity is most sensitive to broader risk appetite.

For market participants, the tension is clear: treasury buyers like BitMine may be absorbing supply, but ETF flows reflect how traditional investors are responding to uncertainty around Ethereum’s longer-term economics and growth trajectory.

Layer-2 adoption and Ethereum’s fee-burn debate

beyond ETF flows, the update highlights structural questions about Ethereum’s future revenue and deflation dynamics. Ethereum’s layer-2 scaling strategy is designed to move more transaction activity off the main chain, improving speed and lowering costs for users.

However, as more activity migrates to layer-2 networks, the Ethereum mainnet captures less transaction-fee revenue. That can also reduce the amount of ETH burned by the protocol, weakening the mechanism that has historically contributed to deflationary pressure.

The result is an ongoing debate: while layer-2s may support overall ecosystem usage and liquidity, they can alter the mainnet’s cash-flow and supply dynamics that investors track. If the majority of activity shifts away from the base layer without a corresponding economic balancing mechanism, long-term holders may need to underwrite Ethereum’s value proposition on factors beyond native fee burn.

Foundation leadership departures add governance uncertainty

In addition to market and protocol-level questions, the update points to internal governance and organizational changes. It states that at least nine senior leaders, researchers, and core contributors have departed the Ethereum Foundation this year, characterizing the wave as one of the largest talent attrition events in its history.

The departures are described as occurring alongside an organizational overhaul and renewed community debate over the foundation’s governance, strategic direction, and role in Ethereum’s long-term development. Even when such moves do not immediately change protocol code, they can influence investor sentiment by affecting expectations around coordination, research priorities, and how quickly contentious issues are resolved.

For readers watching the sector, this is a reminder that Ethereum’s narrative is shaped not only by technical scaling, but also by institutional capacity and how decisions are communicated and managed across the community.

Going forward, the market will likely track whether BitMine’s accumulation and staking yield can continue to offset the portfolio’s unrealized losses, while the broader ecosystem watches ETF flow trends, the pace of layer-2 migration, and any further clarity—or lack thereof—around Ethereum Foundation direction.