BitMine Holds 2% of ETH Supply, Stock Dips After Purchase

BitMine Immersion’s transformation from a traditional Bitcoin mining operation to one of the world’s most aggressive Ethereum accumulators represents one of the most significant strategic shifts in the crypto industry this year. The company began its pivot in May, moving away from energy-intensive mining operations toward raising capital specifically for Ethereum acquisition. This fundamental change in business model has resulted in BitMine now holding 2.42 million ETH worth over $10 billion at current prices, establishing the Nasdaq-listed firm as the largest corporate holder of Ethereum globally.

The scale of BitMine’s accumulation becomes particularly striking when viewed in context: the company now controls approximately 2% of Ethereum’s entire circulating supply. This positions BitMine second only to Bitcoin giant Strategy’s $72 billion BTC stockpile among public company crypto treasuries. According to Monday’s announcement, BitMine’s total balance sheet stands at $11.4 billion, which includes 192 Bitcoin worth $21.6 million, $345 million in unencumbered cash, and a $175 million stake in crypto treasury company Eightco.

Despite the monumental scale of BitMine’s Ethereum accumulation, Wall Street responded cautiously to the company’s latest move. Shares of BitMine (BMNR) were trading almost 10% lower on Monday at $55.30 following the dual announcements of the ETH purchase and a separate $365.2 million share sale to an unnamed institutional investor. This decline occurred even as BMNR remains up more than 3% over the last month, according to data from Yahoo Finance.

The stock’s negative reaction highlights investor concerns about the company’s aggressive fundraising strategy and its complete transformation from Bitcoin mining to Ethereum acquisition. Since May, BitMine has been issuing debt and seeking capital specifically to purchase ETH, a strategy orchestrated by Chairman Tom Lee of Fundstrat Global Advisors. The concurrent share sale announcement likely contributed to the stock pressure, as dilution concerns weighed on investor sentiment despite the company’s massive crypto holdings.

BitMine Chairman Tom Lee, who also serves as Managing Partner at Fundstrat Global Advisors, articulated an ambitious vision for the company’s Ethereum strategy. “BitMine ETH holdings now exceed 2% of supply as we move towards our ‘Alchemy of 5%’ of ETH supply,” Lee stated in the company’s announcement. This reference to alchemy—the medieval pursuit of transforming base metals into gold—suggests Lee views Ethereum acquisition as a transformative financial strategy.

Lee, long known for his Bitcoin bullishness, has recently positioned Ethereum as having even greater potential. In June, he suggested Ethereum could be the “next Bitcoin” as institutional investors increasingly express interest in both the digital coin and its underlying network. Lee’s conviction extends beyond price speculation to fundamental utility, noting that “the rising profile of stablecoins, which are heavily used on Ethereum, show how useful the network can be.” He added, “We continue to believe Ethereum is one of the biggest macro trades over the next 10-15 years.”

This long-term perspective comes as Ethereum faces short-term volatility, with the cryptocurrency recently trading at nearly $4,180 per coin after dropping nearly 7% over a 24-hour period, according to data from CoinGecko. Lee’s strategy appears to look beyond these fluctuations toward Ethereum’s growing ecosystem of decentralized applications, token launches, and the recent regulatory clarity provided by President Trump’s signing of the GENIUS Act in July, which created a framework for issuing digital assets in the U.S.