Bitmine Approaches 5% of Ethereum Supply, Despite $8.4B Unrealized Losses

Tom Lee’s Ethereum treasury firm, Bitmine Immersion Technologies, has resumed accumulating Ether, adding 9,926 ETH in the week ending Aug. 16. The latest purchase brings the company’s total holdings to about 5.82 million ETH—around 4.8% of Ethereum’s circulating supply—bringing it close to a long-stated goal of owning 5% of all ETH.

While the move underscores Bitmine’s long-term conviction, the context is difficult. Ethereum’s extended bear market has meaningfully reduced the profitability of the treasury, with industry estimates indicating Bitmine is carrying more than $8.4 billion in unrealized losses on its ETH position.

Key takeaways

• Bitmine bought 9,926 ETH during the week ending Aug. 16, lifting total holdings to roughly 5.82 million ETH.
• That stake is valued at about $11 billion at a referenced ETH price of $1,893, but much of the ETH was reportedly acquired at higher prices.
• With holdings at ~4.8% of circulating supply, Bitmine is nearing its “Alchemy of 5%” target.
• Despite large unrealized losses, the firm continues staking more than 5 million ETH, supporting ongoing yield generation.
• Using a seven-day staking yield of 2.61%, Bitmine projects annualized staking rewards of about $287 million.

Bitmine’s weekly accumulation brings it closer to 5%

According to Bitmine’s disclosure on Monday, the company’s most recent tranche of purchases totals 9,926 ETH. The firm frames this as a continuation of its ETH treasury strategy, one that has led to weekly buying since launching the approach in June 2025.

By the end of the week ending Aug. 16, Bitmine’s ETH position totals roughly 5.82 million ETH. Based on the company’s own framing of Ethereum’s circulating supply, that equals approximately 4.8%. The firm has long described an “Alchemy of 5%” target—an ambition to accumulate 5% of the entire ETH supply—meaning it is now within striking distance of that milestone.

However, the purchase comes at a time when Ethereum’s market environment has punished portfolios built on aggressive accumulation. At an ETH reference price of $1,893, Bitmine’s holdings were valued at approximately $11 billion, but the article notes that a significant portion of the ETH was acquired at substantially higher prices.

Unrealized losses remain a central pressure point

The scale of Bitmine’s treasury continues to draw attention not just because of its size, but because of how far it has moved below prior acquisition costs during a prolonged bearish phase for Ether.

Industry data cited in the report suggests Bitmine is sitting on more than $8.4 billion in unrealized losses related to its ETH holdings. DropsTab’s estimate characterizes these unrealized losses as roughly 43% of the portfolio’s current value, based on the referenced valuation approach in the article.

This matters for investors and market watchers because a treasury strategy of this type is most resilient when it can offset price drawdowns with consistent yield. Without that, extended declines can turn accumulation into capital lock-up—especially when the target is based on a long-term percentage of supply rather than short-term price appreciation.

Staking keeps the treasury productive

Bitmine’s counterweight to unrealized losses is staking. The company said it is staking more than 5 million ETH, which it values at roughly $9.6 billion at current prices. By performing staking activities that help secure the Ethereum network, Bitmine continues to earn protocol rewards—turning part of its holdings into a more predictable cashflow stream tied to network participation.

Bitmine’s disclosure also highlights how staking yield can buffer volatility. Based on a seven-day staking yield of 2.61%, Tom Lee projected annualized staking rewards of roughly $287 million. The article frames these rewards as independent of Ether’s short-term price swings, emphasizing that yield accrues from staking activity even while market value fluctuates.

For readers assessing whether Bitmine’s strategy is sustainable, staking performance is therefore a crucial variable to monitor. If staking yields compress or if operational dynamics change, the balance between “paper loss” and ongoing earnings could shift.

What to watch as Bitmine heads toward 5%

As Bitmine pushes toward its “Alchemy of 5%” target, the next question is how quickly it can close the remaining gap from roughly 4.8% to 5% of circulating supply—while dealing with the reality that market pricing and acquisition costs may keep unrealized losses in focus. Investors should watch whether Bitmine maintains its weekly buying cadence, and whether staking yields remain strong enough to sustain the treasury’s economics during periods when Ether’s price lags.