Bitmine Stakes $366M in ETH, Eyes 5% of Total Supply: Crypto’s Boldest Bet?

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Bitmine Doubles Down on <a href="https://jpyxx.com/eth-usd/">Ethereum</a> with Massive $366M Staking Deposit

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Bitmine Immersion Technologies recently deposited 162,088 ETH into staking contracts, marking its latest move in a series of substantial Ethereum acquisitions.
The company’s pivot to Ethereum began in mid-2025 under Tom Lee’s leadership, transforming from a Bitcoin mining firm to a major Ethereum accumulator.
Bitmine’s Ethereum holdings have grown to 4,194,029 ETH, with over 82% now staked, following a timeline of weekly purchases and strategic OTC deals since its treasury experiment started.

Bitmine Immersion Technologies, led by Tom Lee, has significantly increased its Ethereum holdings, establishing itself as a major corporate buyer of cryptocurrency.

Bitmine recently deposited $366 million worth of Ethereum (162,088 ETH) into Coinbase Prime for staking. This increases Bitmine’s total staked Ethereum to 4,194,029 ETH, worth $9.48 billion, which now makes up 82.59% of their total Ethereum holdings.

Data from the blockchain, as pointed out by Lookonchain, shows that Bitmine continues to focus on earning returns and decreasing the amount of its cryptocurrency available for trading.

Tom Lee from Fundstrat (@fundstrat) reported that Bitmine staked an additional 162,088 Ether (worth $366 million) eight hours ago. Overall, Bitmine has now staked 4,194,029 Ether (valued at $9.48 billion), which represents 82.59% of their total Ether holdings.

— Lookonchain (@lookonchain) May 1, 2026

A treasury strategy in overdrive

Bitmine started as a Bitcoin mining company, but under new chairman Lee, it shifted its focus to Ethereum in mid-2025. What began as a small investment test has quickly grown into a bold initiative called the “Alchemy of 5%,” aiming to control 5% of all ETH in circulation.

By late April, Bitmine held 5,078,386 ETH, which represents about 4.21% of all Ethereum in circulation. This makes Bitmine the clear leader in Ethereum holdings among companies, and the second-largest corporate holder of digital assets overall, behind only Strategy (formerly MicroStrategy).

I’ve been consistently buying crypto every week, and lately, the total weekly purchases have been hitting over $230 million. We’re not just relying on exchanges, though – we’re also making some private, over-the-counter deals, even buying directly from the Ethereum Foundation sometimes. The good news is, a lot of these holdings are now working for me, earning yield while I hold them.

Currently, more than 82% of Ethereum is staked, with previous data indicating around 3.7 million ETH already committed. This allows Bitmine to earn significant yearly revenue through Ethereum’s proof-of-stake system.

Currently, staking rewards are estimated to be between $260 and $360 million each year. This provides a financial cushion to help offset fluctuations in price.

Tom Lee’s Ethereum vision

Tom Lee, who co-founded Fundstrat Global Advisors and leads its research, has been a consistently optimistic voice about cryptocurrency on Wall Street. He sees Fundstrat’s Bitmine strategy as an investment in the future of Ethereum, specifically its potential in areas like tokenizing assets, dealing with real-world assets, and powering applications driven by artificial intelligence—it’s more than just buying and holding.

Lee recently announced that achieving this milestone in only ten months is remarkably fast. He’s consistently described Ethereum as a crucial long-term investment, comparing it to Michael Saylor’s successful strategy with Bitcoin.

While Saylor believes Bitcoin’s limited supply and potential as a long-term store of value are its strengths, Lee argues that Ethereum’s practical uses, its system for earning rewards through staking, and its vibrant community of developers give it a better chance of success in the future.

Bitmine’s financial standing demonstrates its confidence in the future. In addition to Ethereum, the company has a small amount of Bitcoin (about 200 BTC), almost $1 billion in cash, and investments in potentially high-growth companies, including Beast Industries.

Despite some temporary, unrealized losses when the price of Ethereum fell below $2,000 earlier this year, the company’s total assets have now surpassed $13 billion.

Market reactions and broader implications

Ethereum’s price is currently stable but still recovering from recent market downturns. Despite this, Bitmine is actively staking Ethereum, which is notable because many companies have reduced or stopped their staking activities.

The company’s aggressive purchasing is reminiscent of Strategy’s Bitcoin investments, but happening much faster and focused more on earning returns.

Experts watching the Ethereum network have noticed that locking up a significant portion of the staked supply—estimated to be over 10%—could drastically reduce the amount of Ethereum available. While unlocking this Ethereum might be difficult if the market drops, those supporting this move believe the rewards from staking and potential future price increases will outweigh any risks.

Some analysts are concerned that Bitmine taking on more investment to continue buying assets could create risks related to concentration and potentially lower the value of existing shares. However, the company has attracted significant interest from institutional investors, including firms like ARK Invest (led by Cathie Wood), Founders Fund, Pantera, and Galaxy Digital. Bitmine’s stock has also experienced periods of very high trading activity, showing strong support from individual investors who believe in the company’s strategy.

Risks and the road ahead

Things have been pretty shaky with Ethereum lately – it’s currently around $2,280, and honestly, it’s been a wild ride. As an investor, I know Bitmine took a big hit during the recent dip earlier in 2026 – they ended up with billions in losses on paper, but they managed to hold on through that ‘mini crypto winter’.

Lee has been buying more assets instead of trying to protect against price drops, a strategy similar to Michael Saylor’s. While this can pay off in the long run, it often makes investors anxious.

In the future, the company plans to create its own staking network, called the Made in America Validator Network (MAVAN), giving it greater control and the possibility of offering services to other companies. Reaching its goal of 5% staking would require a significant investment – hundreds of millions of dollars in ETH – which the company would likely obtain through selling shares or borrowing money when market conditions are good.

As Lee combines careful financial planning with the bold, fast-moving strategies common in the crypto world, industry experts are keen to see if this approach will establish Ethereum as a leading asset for company reserves, or if focusing heavily on a single, fluctuating asset will prove risky.

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2026-05-01 13:10