Bitmine, the Nasdaq-listed treasury company, acquired 53,501 ETH in the week through Aug. 30, bringing its holdings to 5.9 million tokens, according to a disclosure reviewed by CryptoSlate. The purchase underscores an ongoing tension in the company’s path to 5% Ethereum ownership: whether staking rewards alone can close the gap, or if additional acquisitions remain necessary.
The company holds 5.06 million ETH in staked form, generating a 2.67% annualized yield. At that rate, Bitmine models that 135,000 ETH in staking rewards could accumulate over one year. Ethereum’s current outstanding supply stands at 122.02 million tokens, according to Etherscan data from Sept. 5. To own 5% at a supply level of 120.7 million ETH, Bitmine would need 6.035 million tokens.
The math depends on two unknowns: how much of the staking reward Bitmine retains, and how fast the Ethereum supply grows. If supply remains flat, Bitmine would need to retain 74% of staking rewards over two years to reach 5% ownership without additional purchases. If Ethereum’s supply grows at 0.5% annually, that retention rate climbs to 96.5%. Bitmine periodically converts ETH-denominated staking rewards into US dollars to meet operating costs and has declared 17 cash dividends on preferred stock with payments scheduled through late December. The company has not committed to a fixed retention percentage.
Unconfirmed September Acquisition
Lookonchain, a blockchain analysis platform, reported on Sept. 1 that Bitmine wallets acquired 51,000 ETH from FalconX and BitGo, cryptocurrency trading firms. That purchase would be worth approximately $126 million and would bring Bitmine’s holdings to an estimated 5.95 million ETH, if confirmed. Bitmine has not publicly confirmed the Sept. 1 acquisition.
Bitmine’s management agreement with Ethereum Tower includes reward-linked compensation, infrastructure costs, and custody costs. The company’s staking yield going forward and its historical reward retention rate remain undisclosed.
