The company now has around $10.4 billion in total holdings, including $ETH (-1.48%) , cash and other investments.
The most important part for me is that $BMNR (-0.61%) now holds more than 5.62 million ETH. That is around 4.66% of Ethereum’s total supply, meaning the company is already about 93% of the way toward its goal of owning 5% of all ETH.
This is not a small number.
When one company is collecting such a large amount of Ethereum, it means a big part of the supply is being taken out of the market. If demand for ETH remains strong in the future, lower available supply can become a positive factor for the price.
Another important point is that Bitmine did not stop buying during market weakness. Over the past week, the company bought another 76,881 ETH. So while many investors were afraid of the drop, Bitmine continued adding.
The company also has around 4.72 million ETH staked, worth roughly $8.1 billion. In simple words, staking means that Bitmine locks its ETH into the Ethereum network and earns rewards from it. According to the report, this could generate around $226 million to $269 million per year in staking revenue.
So Bitmine is not only holding ETH and waiting for the price to go higher. It is also trying to create income from the Ethereum it already owns.
On top of that, the company raised another $280 million through preferred stock and is also launching MAVAN, an institutional Ethereum staking platform. This shows that Bitmine is not just trying to be an ETH holder, but wants to build infrastructure around Ethereum as well.
The way I see it, Bitmine is becoming an Ethereum treasury company.
If Ethereum does well over the next years, Bitmine could benefit a lot. But of course, the risk is also high. The company is now heavily tied to the price of ETH, so if Ethereum falls, Bitmine will probably be under pressure too.
For me, this is an interesting story for investors who believe in Ethereum long term, but it is definitely not a low-risk investment. It is basically a strong bet on Ethereum, staking income and the ability of Bitmine to keep growing this strategy without taking too much risk.
