Bitmine Staking 1.68M ETH Worth $5.65B: What Institutional Crypto War Tells Us

Bitmine has just added another 154,304 ETH to its staking position, bringing total staked holdings to 1,685,088 ETH valued at $5.65 billion. This aggressive move underscores a stark institutional divide in the crypto market: while some mega-players are exiting, others are doubling down on Ethereum with unprecedented scale.

The Latest Staking Push

Breaking Down the Numbers

Bitmine’s most recent transaction represents a significant single addition. According to Onchain Lens data, the company staked 154,304 ETH worth $519.76 million at current prices. This follows an earlier staking of 94,400 ETH valued at $314 million, showing a pattern of sustained accumulation.

The company’s total staked ETH now sits at 1,685,088 coins. Combined with non-staked holdings, Bitmine’s total ETH position reaches approximately 4.17 million coins, representing 3.45% of Ethereum’s circulating supply. For context, this makes Bitmine the largest corporate ETH holder globally.

Why This Matters

Staking is not just hodling. By locking ETH into Ethereum’s proof-of-stake network, Bitmine generates yield while securing the network. At current ETH prices around $3,354, this $5.65 billion staking position generates meaningful protocol rewards. The company’s choice to stake rather than simply hold suggests confidence in both Ethereum’s long-term value and the sustainability of staking yields.

The Institutional Battlefield

Bitmine’s Aggressive Posture

Tom Lee’s Bitmine isn’t just buying ETH—it’s buying aggressively. According to recent data, the company purchased 24,266 ETH last week alone, valued at approximately $75.59 million. While this represents a slower pace than earlier accumulation phases, it still demonstrates sustained commitment.

The company has publicly stated a target of reaching 5% of Ethereum’s total supply. At current holdings of 3.45%, this suggests potential for further significant additions. To enable this strategy, Bitmine is pursuing a shareholder vote to increase authorized shares from 500 million to 5 billion, allowing the company to raise capital through equity issuance for continued ETH purchases.

The Bearish Counterplay

Meanwhile, BlackRock has taken the opposite position. According to recent market data, the investment giant has been consistently selling BTC and ETH holdings, transferring over $300 million in assets to exchanges. Its Ethereum ETF (ETHA) experienced $200 million in net outflows in early January.

Market Context: Why Now?

Ethereum’s Momentum

ETH has shown strong recent performance. Over the past seven days, Ethereum gained 6.14%, and over 30 days, it’s up 13.13%. The network also recorded record new wallet creation recently, according to Santiment analytics, suggesting growing adoption alongside institutional accumulation.

Current ETH price of $3,354 represents meaningful recovery from earlier levels, yet Bitmine continues adding at these prices rather than waiting for pullbacks. This suggests the company views current valuations as attractive for its long-term accumulation thesis.

The Political Dimension

According to recent commentary from Tom Lee, the political environment has become a critical factor in asset allocation decisions. Lee has indicated that Washington policy increasingly influences sectoral performance, and he views crypto and energy favorably under current administration policies. This macro backdrop may be reinforcing Bitmine’s aggressive stance.

What Happens Next?

Shareholder Approval Pending

Bitmine’s ability to accelerate purchases depends on shareholder approval for increased authorized shares. The company faces a high threshold—requiring 50.1% of outstanding shares to approve the proposal. If approved, the company could potentially raise significantly more capital for ETH acquisition.

The 5% Target

Reaching 5% of Ethereum’s supply would require Bitmine to accumulate approximately 6.03 million ETH (based on current circulating supply of 120.69 million). From current holdings of 4.17 million, this implies roughly 1.86 million ETH still needed. At current prices, this represents approximately $6.24 billion in additional capital required.

Sustainability Questions

The key uncertainty is capital availability. Bitmine is raising funds through equity issuance, which dilutes existing shareholders but enables continued accumulation. Whether this strategy can continue at current pace depends on market conditions and shareholder appetite for further dilution.

The Bigger Picture

Bitmine’s actions reflect a specific thesis: Ethereum will appreciate significantly from current levels, and controlling meaningful network supply provides both financial upside and potential governance influence. The company’s willingness to raise capital through equity issuance—accepting shareholder dilution—suggests conviction in this thesis.

The contrast with BlackRock’s selling is instructive. Both are sophisticated institutional players with different time horizons and strategies. BlackRock may be rebalancing or taking profits after recent gains. Bitmine appears to be in accumulation mode, betting on further appreciation.

Summary

Bitmine’s addition of 154,304 ETH to its $5.65 billion staking position represents more than a single transaction—it signals an institutional bet that Ethereum’s value will continue appreciating. The company’s total ETH holdings of 4.17 million coins (3.45% of supply) make it a significant player in Ethereum’s ecosystem.

What’s particularly notable is the contrast this creates in the institutional market. While some major players like BlackRock are selling, Bitmine continues buying, even at higher prices. This divergence suggests different views on Ethereum’s near-term trajectory and long-term value.

The pending shareholder vote on share authorization will be a key catalyst. If approved, Bitmine could accelerate its path toward the stated 5% supply target. If rejected, accumulation would slow. Either way, the company’s current positioning makes it a major stakeholder in Ethereum’s future, with both financial incentives and potential governance influence over protocol decisions.