Bitmine, Tom Lee's Ethereum treasury company, keeps buying ether even as it sits on $8.4 billion in unrealized losses. The firm's holdings are now close to 5% of the total Ethereum supply, a stake that gives it outsized influence. More than 5 million of its ETH is staked, a position projected to pay out $287 million a year.
A losing trade, but the buying continues
The losses are real on paper. Bitmine's cost basis is well above current prices, leaving the treasury $8.4 billion underwater. That hasn't stopped the company from adding more. The buying has been steady through the downturn, and there's no sign it's slowing.
The staking income
Bitmine has staked over 5 million ETH. That stake is projected to earn $287 million in annual rewards. It's a cash flow that helps justify the position, even if it doesn't cover the paper loss. The staking rewards also give the company a reason to hold rather than sell.
Approaching the 5% mark
Bitmine is nearing 5% of Ethereum's supply. That's a level few single entities have reached. The company's continued buying suggests it's not worried about the attention that comes with such a large stake. Whether it pushes past 5% or not, the position is already big enough to matter.
