BitMine Shows Signs of Buying Another 20,000 Ethereum, Nearing 5% Target

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BitMine, led by Tom Lee, has received 20,000 Ethereum from Kraken, indicating an additional purchase worth approximately $48.9 million. This brings the company’s Ethereum holdings to 5,847,611 ETH, representing about 4.8% of the total circulating supply. Chairman Tom Lee has stated that reaching the 5% target by year-end is achievable, but due to increasing Ethereum supply, the actual amount needed is roughly 251,000 ETH more than initially estimated. BitMine stakes the majority of its Ethereum holdings, generating approximately $330 million in annual rewards, and is expanding into Ethereum operations through its in-house validator division MAVAN.

Key Elements

BitMine, led by Tom Lee, is estimated to have purchased an additional $48.9 million (approximately 68 billion won) worth of Ethereum (ETH). On the 26th (local time), according to on-chain analytics platform Lookonchain, a wallet associated with BitMine received 20,000 Ethereum from cryptocurrency exchange Kraken. The value of the transfer was estimated at approximately $48.89 million at the time of the transaction, with each Ethereum priced at around $2,445 (approximately 3.4 million won).

Lookonchain inferred that BitMine made an additional purchase based on the movement of Ethereum from Kraken to BitMine’s side. However, BitMine has not officially confirmed the transaction as a purchase.

251,000 ETH Remaining to Reach 5% Target

This purchase activity signals that BitMine’s Ethereum accumulation strategy is accelerating. As of the 23rd, BitMine held 5,847,611 Ethereum, representing approximately 4.8% of the total circulating supply. The company has set a goal of securing 5% of the Ethereum supply by the end of 2026.

BitMine has purchased Ethereum every week for 60 consecutive weeks since its first purchase on June 30, 2025. This stands in contrast to Michael Saylor’s MicroStrategy, which took six years to accumulate 4.19% of Bitcoin’s circulating supply. BitMine surpassed that percentage in just 14 months.

Chairman Tom Lee said on the Bankless podcast, “To reach 5%, we need approximately $350 million (about 490 billion won) more in Ethereum. We should be able to achieve that by year-end.” However, this estimate was made before Ethereum’s price surged.

The fact that Ethereum’s supply is not fixed is a key variable. Over the past 30 days, 85,893 new Ethereum have been issued on the network, bringing the total supply to 121.98 million. This is roughly 1.3 million more than the figure used in BitMine’s own disclosures. To actually achieve 5%, BitMine would need 6.1 million Ethereum, leaving a shortfall of approximately 251,000 ETH. At the price on the 26th, this amounts to about $620 million (approximately 860 billion won).

Staking Rewards Provide Funding

Chairman Tom Lee dismissed the possibility of selling Ethereum. BitMine stakes the majority of its Ethereum holdings, with 5,067,309 ETH deposited. This position generates approximately $330 million (about 460 billion won) in annual rewards, representing about 12% of all staked Ethereum.

These returns cover the dividends on BMNP, a 9.5% preferred stock that BitMine issued in June at $80 per share. Chairman Tom Lee described it as “a cheap three-year call option on Ethereum.”

BitMine is also transforming into an Ethereum operator. The company launched its in-house validator division MAVAN (Made in America Validator Network) in March and served as an anchor for three groups spun off from the Ethereum Foundation. Chairman Tom Lee cited tokenization and artificial intelligence (AI)—not stablecoins—as the long-term investment thesis.

BitMine has also invested $89 million (approximately 120 billion won) in ORBS (NASDAQ: ORBS), which is known to provide indirect investment exposure to OpenAI, and $180 million (approximately 250 billion won) in video creator company Beast Industries.

Ethereum traded at approximately $2,480 on the 25th (local time), up 1% for the day. Last week, it rose about 30%, marking its largest weekly gain since May 2025. BitMine capitalized on this rally to execute its largest weekly purchase since early July.

Chairman Tom Lee referenced similar past rallies, noting, “After the July 2021 surge, Ethereum rose an additional 167%, and in the May 2025 phase, it gained another 170%.”

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Source: finance.biggo.com