Bitmine has bought another 6,000 Ethereum for $11 million, pushing its total holdings to nearly 5% of the entire supply. The mining firm's aggressive accumulation and staking strategy is tightening available liquidity on exchanges and drawing fresh attention from regulators.
$11 million buy
The purchase, disclosed this week, is the latest in a series of large ETH acquisitions by Bitmine. At roughly $1,833 per ETH, the deal adds to a position that now represents about one in every twenty Ethereum tokens in existence. Most of those coins are staked, meaning they're locked in the network's proof-of-stake consensus mechanism and not available for trading. Bitmine earns staking rewards on its locked ETH, which adds a steady revenue stream on top of its mining income. Most mining operations sell their rewards to cover costs, but Bitmine has been hoarding instead.
Liquidity squeeze
With a single entity controlling close to 5% of all Ethereum, the market's order book depth takes a hit. Staked ETH doesn't move, so the effective float shrinks. That can make prices more sensitive to large trades. Some market makers have already adjusted their spreads on ETH pairs, according to exchange data — though Bitmine itself hasn't sold any significant amount. The accumulation also reduces the amount of ETH available for decentralized finance protocols that rely on liquid staking derivatives, potentially squeezing yields in that sector.
Regulatory spotlight
Concentrated ownership of a major proof-of-stake network is a growing concern for regulators. The U.S. Securities and Exchange Commission and the European Securities and Markets Authority have both flagged staking concentration as a risk to network health and market fairness. Bitmine's holdings are approaching the 5% threshold that triggers mandatory disclosure under some securities laws. The company hasn't commented on any regulatory inquiries, but the clock is ticking.
Bitmine shows no signs of slowing down. If it continues accumulating at the current pace, it could cross the 5% mark within weeks. That would force the firm to file public ownership reports in several jurisdictions. The bigger question is whether the market can absorb another large buy without significant price impact. For now, traders are watching the on-chain movements closely, and regulators are likely doing the same.
