Tom Lee Says BitMine Has No Reason To Sell ETH With Staking Rewards Over $300M

• BMNR
• ETH-USD

• BitMine won’t have to sell Ethereum out of financial necessity because the staking rewards of about $300 million a year cover roughly $30 million to $35 million in annual preferred dividends, Lee said.

• In total, BitMine had 5,815,164 ETH, or about 4.8% of supply, 200,000 ETH short of the 5% it set out to hold.

• Lee said it would make sense for enterprises to start holding ETH and BitMine would revisit the question next year.

BitMine Immersion Technologies Inc. (BMNR) chairman Tom Lee said on Monday that the company would not need to sell any of its Ethereum (ETH) holdings, and that staking rewards easily cover its obligations to preferred shareholders.

BitMine will not sell ETH out of financial necessity, and its preferred stock dividends are well covered by existing ETH rewards, Lee told Bankless. He estimated the annual dividend burden on the company’s 9.5% Series A perpetual preferred (BMNP) at about $30 million to $35 million, compared with staking rewards that he said would be close to $300 million a year at current prices.

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“Instead of us selling Ethereum, we’re more likely trying to find ways to monetize our Ethereum holdings,” Lee said, adding that ETH was an inherently yield-bearing asset and that the company was not currently converting rewards into dollars.

Five Percent Not Final

Lee also suggested that the company’s 5% supply target may not be a cap. “It would make a ton of sense to own more than 5% if enterprises start to hold ETH as a long-duration asset, but we’ll come back to that question next year,” he said.

Lee estimated the company was about 200,000 ETH, or roughly $350 million, short of the target. Staking rewards alone were worth more than 100,000 ETH a year, he said, so around 80,000 ETH had to be purchased outright.

BitMine was expected to reassess how quickly it would buy Ethereum in September, said Lee, and the company would probably have bought up to 5% if the Digital Market Asset Clarity Act (CLARITY Act) had passed. The Senate is expected to take a procedural vote on the bill September 15.

Lee added that Ethereum should be trading above $5,000 on a new bull cycle alone and could easily go above $10,000 within one to two years once tokenization and AI-driven demand are layered in.

Ethereum’s price was up by 2% during the past 24 hours. On Stocktwits, retail sentiment around ETH remained in the ‘extremely bullish’ zone, while chatter around it stayed at ‘high’ levels over the past day.

Source: finance.yahoo.com