Bitmine nears 5% of Ethereum supply despite $8.4B in unrealized losses

cointelegraphPublished on 2026-08-17Last updated on 2026-08-17

Abstract

Bitmine Immersion Technologies has resumed purchasing Ethereum, acquiring an additional 9,926 ETH last week. This brings its total holdings to approximately 5.82 million ETH, representing 4.8% of the circulating supply and nearing its goal of owning 5% of all ETH. Despite an $11 billion portfolio value at current prices, the company faces significant challenges, sitting on over $8.4 billion in unrealized losses as much of its ETH was bought at higher prices during the bear market. Nevertheless, Bitmine continues its accumulation strategy, which began in June 2025. The company also stakes over 5 million ETH, valued at around $9.6 billion, generating an estimated $287 million in annualized rewards and providing a yield independent of price volatility.

Tom Lee’s Bitmine Immersion Technologies, an Ethereum treasury company, resumed its Ether purchases last week, bringing it closer to a key business target of owning 5% of the second-biggest cryptocurrency’s supply despite challenging market conditions.

The company disclosed Monday that it acquired 9,926 Ether (ETH) during the week ending Aug. 16, bringing its total holdings to roughly 5.82 million ETH, or about 4.8% of Ethereum’s circulating supply. At an ETH reference price of $1,893, Bitmine’s Ether holdings were valued at roughly $11 billion. However, much of the company’s ETH was acquired at significantly higher prices.

Ether’s price was little changed on Monday, sitting just above $1,900.

The latest purchase puts Bitmine within striking distance of its long-term “Alchemy of 5%” target of holding 5% of the total ETH supply.

Bitmine’s conviction has been tested by a prolonged bear market for Ether, which has sharply eroded the value of its digital asset treasury. The company is sitting on more than $8.4 billion in unrealized losses on its ETH holdings, according to industry data.

With a portfolio value of more than $11 billion, BitMine’s unrealized losses are around 43%. Source: DropsTab

Still, Bitmine has continued accumulating Ether, making purchases every week since launching its ETH treasury strategy in June 2025.

Related: Ethereum devs to narrow 66 proposals tied to Hegotá upgrade

Bitmine’s staked Ether approaches $10 billion in value

Although Bitmine is sitting on large unrealized losses on its Ether holdings, its staking operations continue to generate yield. The company said it is staking more than 5 million ETH, worth roughly $9.6 billion at current prices.

That staking has enabled Bitmine to earn protocol rewards for helping secure the Ethereum network, providing a predictable source of yield regardless of short-term ETH price movements. Based on a seven-day staking yield of 2.61%, Bitmine projects annualized staking rewards of roughly $287 million, according to Lee.


Related: Crypto Biz: Bitcoin’s $116M self-custody wake-up call

Trending Cryptos

ctr
CitreaCTR
wstusdt
wrapped stUSDTWSTUSDT
apr
CapricornAPR
ctx
Cryptex FinanceCTX
audio
AudiusAUDIO
mantra
MantraMANTRA
waxl
AxelarWAXL
bill
Billions NetworkBILL
pyth
PYTH (Pyth)PYTH
rune
THORChainRUNE
velodrome
Velodrome FinanceVELODROME
brev
BrevisBREV
cake
PancakeSwapCAKE
dos
DAPPOSDOS
jst
JUSTJST

Related Reads

Semiconductor Mid-Game Check-in: How Much Left in the Tail-End Rally?

Semiconductor Mid-Game Review: How Much is Left in the Rally? This analysis compares the current semiconductor market trend to NVIDIA's trajectory in 2024, drawing lessons on identifying market tops and bottoms. In July-August 2024, NVIDIA's stock fell 33%, triggered by a combination of "fundamental rumors" (Blackwell delays, antitrust probes) and "macro-driven asset selling" (BOJ rate hike leading to carry-trade unwinding). The low was marked by extreme panic selling across global markets. Key characteristics of a TOP include: Technical patterns like double tops or failure to break highs; Overcrowded and leveraged positioning (e.g., excessive retail and ETF inflows into a single stock like NVDA); High fragility where even a minor fundamental disappointment (e.g., a slight margin dip in stellar earnings) triggers a sharp correction. The practical action is to reduce exposure upon seeing technical warning signs combined with crowded trades. Key characteristics of a BOTTOM include: Technical reversal signals like a high-volume bullish engulfing pattern after a steep drop; Panic indicators hitting extremes (e.g., record VIX, major index crashes) signaling selling exhaustion; The downturn being driven by macro or systemic shocks unrelated to the company's core business fundamentals, creating a mispricing that quality companies eventually recover from. The conclusion is that while the current semiconductor rally may be in its later stages ("fish tail"), understanding these patterns—where tops form from crowded optimism and bottoms from panic unrelated to fundamentals—can help navigate remaining volatility.

marsbit17m ago

Semiconductor Mid-Game Check-in: How Much Left in the Tail-End Rally?

marsbit17m ago

New Insider Trading in Prediction Market Exposed: It's Impossible to Lose When You Sit in That Position

PolyBeats reported on August 19 about a user who achieved a 120% return in just 89 seconds by betting that Russia would capture Konstantynivka on a prediction market platform, where the probability (and price) surged from 43% to 92%. This trade was notably the 14th in a series of perfect predictions related to the Russia-Ukraine war by this account, with a total profit of approximately $17,500. Eleven of these trades saw the probability jump to near 100% within five minutes of the purchase. The article suggests these consistent gains point to potential insider knowledge. The key is that these prediction markets on Polymarket settle based not on real-time battlefield events, but on whether the Institute for the Study of War (ISW) updates its official interactive map to show an area as controlled by Russia. Therefore, profiting reliably doesn't require military intelligence, but merely advance knowledge of when and where ISW will update its map. This mirrors a prior incident in November 2025, where an unauthorized, temporary edit to the ISW map regarding Myrnohrad allowed a trader to make over a 10,000% return before the edit was reversed. While ISW has since added safeguards like "pending review" statuses and duration requirements for map changes, the article argues the 14-trade winning streak indicates someone with access to the map update process—like an ISW staffer—could exploit the time gap between an internal decision and its public release, turning administrative knowledge into nearly guaranteed profits.

marsbit52m ago

New Insider Trading in Prediction Market Exposed: It's Impossible to Lose When You Sit in That Position

marsbit52m ago

Storage Giants Launch Massive Buybacks, Signaling a Turning Point in the 'Super Cycle'?

In August, South Korean memory giant SK Hynix announced a record 40 trillion won stock buyback, triggering a sharp rise in related stocks. This move, along with similar large-scale buybacks or shareholder return plans from Kioxia, SanDisk, and an expected major plan from Samsung Electronics, aims to bolster market confidence amid a significant sector correction starting July. Despite strong AI-driven demand fueling a "super cycle" and long-term supply agreements locking in most capacity with strict penalty clauses, concerns over an AI bubble and cycle peak have emerged. Looking ahead, analysts warn that accelerated capacity expansions—including from Chinese leaders CXMT and YMTC—scheduled for 2027-2028, coupled with potential delays in next-gen HBM production, could intensify competition. While buybacks and long-term agreements offer short-term support, the memory sector's ability to truly break its cyclical pattern may face a decisive test in the coming years.

marsbit58m ago

Storage Giants Launch Massive Buybacks, Signaling a Turning Point in the 'Super Cycle'?

marsbit58m ago

Trading

Spot

Hot Articles

Discussions

Welcome to the HTX Community. Here, you can stay informed about the latest platform developments and gain access to professional market insights. Users' opinions on the price of ETH (ETH) are presented below.

活动图片

Top Questions