BitMine Immersion Technologies recently staked 86,400 Ethereum, valued at $266 million on January 10. This significant addition brings the company's total staked Ethereum position to approximately 1.77 million ETH, with a current valuation of $5.6 billion.
The Nasdaq-listed company, chaired by Fundstrat co-founder Tom Lee, now holds 4.17 million ETH. This substantial holding represents 3.45% of Ethereum's circulating supply, positioning BitMine as the world's largest corporate Ethereum treasury.
This aggressive staking initiative occurs concurrently with a notable trend of declining Ethereum balances on centralized exchanges. In December, these balances dropped to 16.2 million ETH, marking a 21% decrease from the 20.75 million ETH recorded at the beginning of the year.
BitMine's increased accumulation aligns with a broader surge in institutional interest. Corporate holders and spot Exchange-Traded Funds (ETFs) now collectively control approximately 10.7% of the total Ethereum supply.
Key Developments
BitMine commenced its staking operations on December 26, initiating with a deposit of roughly 74,880 ETH, which was valued at $219 million at the time, according to onchain analytics platform Lookonchain.
Following this initial deposit, the company further staked 82,560 ETH, worth $259 million, on January 5. Additionally, over a two-day period in late December, BitMine staked a substantial 342,560 ETH, equivalent to $1 billion.
BitMine is actively developing the Made in America Validator Network. This network is slated for a first-quarter launch, following the completion of pilot programs with three institutional staking providers.
Based on current composite Ethereum staking rates, which are hovering around 2.8%, the company projects potential annual staking income of $374 million once its entire Ethereum holdings are fully deployed for staking.
Strategic Implications
The observed supply dynamics indicate an intensification of institutional accumulation, while retail participation remains relatively subdued. This is further evidenced by the decline in Ethereum futures open interest, which has fallen from a peak of $70 billion in July to $37 billion by December.
BitMine's significant Ethereum holdings place it as the second-largest public cryptocurrency treasury globally. It trails only Strategy, which holds 687,410 BTC, valued at approximately $62 billion.
The company has publicly stated its long-term objective to acquire 5% of Ethereum's circulating supply. At current market levels, this target equates to approximately 6 million ETH.
As of the press time, Ethereum was trading around $3,100, reflecting a year-to-date decrease of more than 12%, despite the ongoing trend of institutional accumulation.