Why Is Bitmine Still Buying ETH?
Bitmine bought 25,000 ETH on Wednesday, adding about $41 million worth of ether to what is already the world’s largest corporate Ethereum treasury.
The purchase was reported by blockchain analytics platform Lookonchain, which said the transaction took place at approximately 11:22 a.m. ET. Arkham Intelligence data linked in the post showed the funds moving from a hot wallet belonging to BitGo, Bitmine’s custody partner.
The latest acquisition brings Bitmine’s reported purchases over the past 3 days to 125,000 ETH, worth about $205 million at current market prices. Bitmine has not yet formally confirmed the latest transactions, as the company typically updates the market through weekly disclosures.
The scale of the reported buying is close to the company’s most recent official update. On Monday, Bitmine disclosed that it had bought 126,971 ETH during the prior week for roughly $207 million, bringing its total treasury to 5,543,872 ETH.
How Close Is Bitmine to Its ETH Supply Target?
Bitmine’s latest official holdings represent 4.59% of ether’s circulating supply of 120.7 million tokens. That places the company 92% of the way toward its stated target of accumulating 5% of Ethereum’s total supply.
The strategy has made Bitmine one of the most aggressive corporate buyers of digital assets, but with a narrower focus than bitcoin treasury companies. Instead of using bitcoin as the primary reserve asset, Bitmine is building a large balance sheet position around Ethereum, betting that ether’s long-term role in settlement, tokenization, decentralized finance, and stablecoin activity will outweigh near-term price weakness.
The pace of buying also shows that Bitmine is treating lower ETH prices as an accumulation window rather than a reason to pause. Chairman Tom Lee previously said Ethereum’s pullback had prompted the firm to accelerate purchases because the company does not view the decline as reflecting Ethereum’s fundamentals.
Investor Takeaway
Bitmine is using price weakness to move closer to its 5% ETH supply target. That strengthens its treasury narrative, but it also increases the company’s exposure to mark-to-market losses if Ethereum remains under pressure.
What Does the Paper Loss Say About the Risk?
The buying comes despite a sharp decline in Ethereum this year. Ether is down more than 44% since the start of 2026 and was recently trading around $1,642.70.
Based on market data, Bitmine is sitting on an estimated $9.9 billion in unrealized losses on its total ether holdings. That figure does not necessarily affect day-to-day operations unless the company sells assets or faces financing pressure, but it highlights the risk of concentrating a corporate treasury in a volatile token.
The contrast between Bitmine’s buying pace and its paper losses is central to how investors are likely to assess the company. Supporters may view the strategy as disciplined accumulation during a drawdown. Skeptics may see it as a leveraged bet on Ethereum sentiment at a time when the asset has failed to recover from a deep decline.
The company’s share price reflects some of that pressure. Bitmine fell 3.46% on Wednesday to close at $15.64, extending investor scrutiny of how closely the stock is tied to Ethereum’s price path.
Why Does Bitmine’s Financing Plan Matter?
Bitmine is also seeking new capital while continuing to build its ETH position. Earlier this month, the company filed to offer 3 million shares of Series A perpetual preferred stock with a 9.5% annual dividend rate on a per-share amount of $100.
The preferred stock is expected to list on the New York Stock Exchange under the ticker BMNP. The structure is similar to preferred-share financing used by other crypto treasury companies and gives Bitmine another route to raise capital without relying only on common equity issuance.
For investors, the financing structure matters because it can support continued ETH buying, but it also introduces a fixed dividend obligation. If Ethereum remains weak, the company’s treasury value may stay under pressure while financing costs become more visible.
Bitmine’s strategy is therefore becoming a test of how far the corporate crypto treasury model can extend beyond bitcoin. The company is close to its 5% ether supply target, but the market is now weighing that accumulation against large unrealized losses, preferred-share financing costs, and the broader weakness in ETH prices.
