Bitmine Deposits $219 Million in ETH for Ethereum Staking, Accumulates Over 4 Million ETH

Source: CoinTribune Original Title: Bitmine switches to Ethereum staking with a $219 million deposit Original Link: https://www.cointribune.com/en/bitmine-switches-to-ethereum-staking-with-a-219-million-deposit/

Overview

Bitmine has taken a major step by depositing 74,880 ETH, equivalent to $219 million, into Ethereum’s proof-of-stake system. This move marks the company’s first foray into staking, a strategic transition towards generating passive income. With an estimated annual yield of 3.12%, Bitmine could generate over 126,000 ETH in rewards each year, roughly $371 million.

This operation strengthens Bitmine’s position as one of the largest holders of Ethereum, with 4.066 million ETH in treasury, representing 3.37% of the total supply. Such a commitment could boost institutional investor confidence and increase the TVL on the Ethereum network, thereby consolidating its dominance in the crypto ecosystem.

Bitmine’s Aggressive ETH Accumulation: $540 Million in One Month

Bitmine has accelerated its Ethereum accumulation with spectacular purchases. After a $199 million investment in early December, the company injected an additional $320 million of ETH, raising its monthly commitment to over $540 million. An aggressive strategy that has allowed Bitmine to exceed 4 million ETH in treasury, valued at over $11.9 billion.

This record accumulation fits into a long-term vision. Bitmine aims to hold 5% of the total ETH supply—an ambitious goal that reinforces its position as a leader among crypto treasuries. With an average purchase price around $2,991 per ETH, the company is positioned to benefit from a potential price rise, with some analysts predicting ETH between $7,000 and $9,000 in 2026.

Dual Strategy: Staking and Accumulation

Bitmine is betting on a dual strategy: massively accumulating ETH while staking it to generate passive income. An approach that offers major advantages but also significant risks.

Advantages:

• Staking provides an annual yield of 3.12%
• Secures the Ethereum network
• Positions Bitmine as a key player in the ecosystem
• Aggressive accumulation allows capitalizing on a possible price increase

Risks:

• Crypto market volatility can impact treasury value
• Staking imposes a lock-up period on funds, limiting liquidity
• In cases of urgent liquidity needs, Bitmine could find itself constrained, especially if the market were to drop
• Some experts see this approach as a catalyst for an “institutional squeeze” on ETH
• Managing such a large treasury in an unpredictable market presents significant challenges

Bitmine has chosen an ambitious path by combining staking and massive ETH accumulation. A strategy that could prove extremely lucrative if Ethereum reaches its anticipated price targets. However, the fundamental question remains: should crypto treasuries prioritize security or bet on bold moves to maximize their returns?