BitMine increases position against the trend, purchasing 44,463 ETH, with holdings surpassing $12 billion.

BitMine (BMNR) disclosed on December 28th that last week they purchased an additional 44,463 ETH (approximately $130 million), bringing their total holdings to 4,110,525 ETH, accounting for 3.41% of ETH’s circulating supply, with a market value of about $12.04 billion. Of these, 408,627 ETH are staked, with an annual yield of 2.81%, estimated to generate annual staking income of $374 million.

BitMine’s $12 Billion ETH Reserves and Staking Revenue Engine

The current 4,110,525 ETH held by BitMine, valued at approximately $12.04 billion at current prices, makes it one of the largest enterprise-level ETH holders globally. More importantly, the company is not merely accumulating assets but actively generating income through staking. Currently, 408,627 ETH are deployed with three staking providers, yielding an annualized return of 2.81%, which translates to about $374 million in staking income per year—over $1 million daily.

This staking income model fundamentally changes the value logic of crypto treasury companies. Traditional Digital Asset Management (DAM) firms profit solely from token price appreciation, but BitMine has established a stable cash flow through staking. Even if ETH prices stagnate or decline, the $374 million annual income continues to flow in, making it easier for the company’s market value (mNAV) to stay above 1.

BitMine Chairman Thomas Lee stated: “When BitMine’s ETH is fully staked with MAVAN and its staking partners, the annual staking fee will reach $374 million, or over $1 million daily.” This suggests that only about 10% (408,627 / 4,110,525) of the holdings are currently staked. As MAVAN launches, the staking ratio could significantly increase, multiplying the income scale.

MAVAN (a domestic validation network in the US) plans to launch in Q1 2026, which is central to BitMine’s differentiated strategy. Unlike using third-party staking services, MAVAN will enable BitMine to operate validation nodes directly, retaining all staking rewards and increasing network control. From an Ethereum governance perspective, entities controlling 3.41% of supply and operating numerous validation nodes could exert significant influence over protocol upgrades and governance decisions.

BitMine also reports holdings of 192 BTC, assets worth $23 million in Worldcoin (WLD), shares in Eightco Holdings, and a cash balance of $1 billion. The total of crypto assets and cash reserves reaches $13.2 billion, providing ample liquidity buffer to support ongoing ETH purchases.

Counter-Cyclical Buying Strategy and Year-End Tax Loss Harvesting Play

(Source: PRNewswire)

The timing of BitMine’s purchase of 44,463 ETH last week warrants in-depth analysis. Thomas Lee candidly said: “As the year-end holidays approach, market activity tends to slow down. Year-end tax-loss selling can depress prices of cryptocurrencies and crypto stocks, especially from December 26 to 30.” This clear awareness of market timing indicates that BitMine is leveraging the year-end sell-off window to buy on dips.

Tax Loss Harvesting is a common strategy among US investors, selling losing assets before year-end to offset capital gains taxes. This concentrated selling creates short-term price pressure in the last week of December but also offers buying opportunities for cash-rich investors. BitMine’s $1 billion cash reserve allows it to make large acquisitions during this window without being overly affected by short-term price fluctuations.

Notably, the purchase volume of 44,463 ETH is over 50% less than the previous week. This may reflect two scenarios: one, BitMine believes current prices are near fair value and is slowing its buying pace; two, the company is reserving funds for upcoming shareholder meetings and stock issuance proposals, avoiding excessive cash depletion before equity expansion. Regardless, ongoing purchases demonstrate confidence in ETH’s long-term value.

According to Coinglass data, Ethereum saw $77.2 million in liquidations over the past 24 hours, with $44.7 million in short liquidations. This predominantly short liquidation structure indicates that despite weak ETH prices, many investors remain bearish and leveraged short. When prices slightly rebound, these short positions are forced to cover, providing buying support for ETH. BitMine’s continuous buying may be exploiting this short squeeze effect.

Shareholder Meeting on January 15: Four Key Resolutions

Authorization for Capital Increase: Plan to increase authorized shares to provide flexibility for future equity offerings to fund ETH purchases, a key step toward reaching the 5% supply target.

Employee and Director Incentive Plan: Launching equity incentives aligned with management and shareholder interests to ensure long-term ETH accumulation strategy.

Corporate Governance Optimization: Possible adjustments to board seats or voting rights to facilitate rapid decision-making and capital operations.

Authorization for MAVAN Staking Program: Official approval for management to advance MAVAN construction and staking business expansion, potentially involving hundreds of millions of dollars in capital expenditure.

Feasibility and Market Impact of the 5% Supply Target

BitMine has explicitly stated its goal to hold 5% of ETH’s total supply, a highly ambitious strategic target. Currently holding 3.41%, it still needs to acquire about 1.9% more of the supply. With approximately 120 million ETH in circulation, this equates to roughly 22.8 million ETH, which at current prices would cost about $670 billion.

Achieving this goal requires sustained capital support. The shareholder meeting’s proposed authorization for capital increase will provide a legal basis for BitMine to raise funds via share issuance. The company might adopt similar strategies like convertible bonds or targeted placements to institutional investors. Although its $1 billion cash reserve is substantial, it is still a fraction of the roughly $67 billion needed, so ongoing financing capacity will determine whether the target is feasible.

From a market perspective, if BitMine truly reaches 5%, it will have a profound impact on ETH’s supply-demand dynamics. This 5% of ETH will be locked in staking long-term, permanently exiting circulation. A 5% reduction in tradable supply, even with demand unchanged, should theoretically push prices higher. Moreover, such large-scale institutional accumulation signals strong confidence, likely attracting other institutions to follow.

Technically, ETH’s recent weak performance adds uncertainty to BitMine’s strategy. Over the past week, ETH failed to break above the 20-day EMA, and after encountering resistance at the descending triangle’s upper boundary, it quickly retreated. If ETH can hold above $2,880 and break the triangle resistance near the 50-day EMA, it may test $3,250. Conversely, a drop below $2,770 could see it fall toward $2,620. RSI and stochastic indicators remain neutral, indicating a roughly balanced momentum.

BitMine’s continued buying amid technical uncertainty suggests a focus on fundamentals rather than short-term price movements. If this contrarian approach proves correct during ETH rebounds, it could attract more imitators into the market.