The Ethereum Foundation completed its third over-the-counter sale to BitMine Immersion Technologies on May 2, offloading 10,000 ETH for $22.9 million. Combined with two prior sales within seven days, the protocol organization has sold approximately $47 million worth of ETH to the largest Ethereum treasury company, triggering community backlash over the velocity and scale of the liquidations.
Foundation Accelerates OTC Sales Amid Operational Pressure
The Foundation’s three consecutive OTC transactions to BitMine represent a sharp departure from its previous sales cadence. The first sale occurred in March at $2,043 per ETH for 5,000 tokens. The second trade followed one week before May 2 at $2,387 per ETH for 10,000 tokens. The third concluded on May 2 at $2,292 per ETH. In an X post Friday, the Foundation stated the sales fund “core operations and activities, including protocol R&D, ecosystem development, community grant funding and more.” The Foundation has historically relied on OTC sales to maintain operations but previously faced criticism over disposal pace and committed to limiting future sales.
Staking Goals Abandoned as Foundation Liquidates Holdings
The aggressive sales timeline coincides with a significant reversal in the Foundation’s staking strategy. Last week, the organization unstaked 17,035 ETH, valued at approximately $40 million at current prices. This move appears to contradict a stated goal of maintaining 70,000 staked ETH. BitMine, which holds 5 million ETH total, increased its weekly purchases to 101,901 ETH, with 4.19 million ETH currently staked—an 83% staking ratio. The broader Ethereum staking ecosystem holds $9.5 billion in staked ETH, down from a 70% historical average, as ETH has declined 53% from its August all-time high of $4,953.
Community Questions Funding Burn Rate and Governance Transparency
Community members have challenged the Foundation’s spending velocity. One user responded to the announcement: “Why do you need $46 million in 2 weeks?! How much are you guys burning and what for? Why is no one from the devs taking ETH directly as payment?!” The Foundation has not issued a formal response to criticism. BitMine’s acquisition strategy and rationale remain undisclosed, as does a breakdown of how the $47 million will be allocated across the stated operational categories. Tom Lee, BitMine chair, has not commented publicly on the purchases.
What Happens Next: Transparency Pressure Builds
The Foundation faces mounting pressure to disclose detailed spending breakdowns and justify the accelerated liquidation schedule. Without clarity on burn rate and allocation, further OTC sales will likely trigger additional community scrutiny. ETH currently trades at $2,303. The Foundation’s next moves will signal whether the staking goal has been formally abandoned or simply deferred.
