Bitmine buys 126,971 ETH in $214M dip purchase, nears 5% supply target

Bitmine Immersion Technologies acquired 126,971 Ether worth roughly $214 million during last week's market downturn, marking the Norwalk-based treasury firm's largest weekly purchase of 2026 and pushing its total holdings to 5.54 million ETH.

"We increased our buying as we believe this pullback in ETH prices does not reflect the strengthening of Ethereum fundamentals," Thomas "Tom" Lee, Chairman of Bitmine, said in a statement. "This is not surprising given we are in the early stages of crypto spring."

Ether slid to about $1,522 late last week, its lowest level since April 2025, before recovering to around $1,686 as of Monday. The broader crypto selloff erased roughly 15% from ETH's value over the prior week, triggered in part by a security flaw discovered in Zcash's Orchard circuit that briefly rattled investor confidence. Lee dismissed the downturn as a superficial reaction, arguing that increasingly powerful AI systems will expose vulnerabilities across both centralized and decentralized platforms, ultimately strengthening demand for hardened blockchain infrastructure like Ethereum.

Bitmine now controls 4.59% of Ether's circulating supply, bringing it to 92% of its stated "Alchemy of 5%" accumulation target. The firm staked about 85% of its holdings — roughly 4.72 million ETH — through its Made-in-America Validator Network, generating projected annual staking revenue of around $230 million at current yields. If Bitmine stakes its entire balance, that figure could approach $270 million annually, according to Lee.

The company funded the acquisition through an upsized Series A Perpetual Preferred Stock offering of 3.5 million shares at $80 apiece, expected to net about $274 million after fees. The structure mirrors the preferred equity model used by Strategy, the $54 billion Bitcoin treasury firm that pioneered corporate digital asset accumulation through equity-linked financing. Bitmine also reported $247 million in cash alongside smaller Bitcoin holdings and an $88 million strategic investment in Eightco Holdings, one of the few publicly traded companies offering indirect exposure to OpenAI.

Despite the aggressive accumulation, Bitmine's Ethereum treasury currently reflects an estimated $9.7 billion in unrealized losses due to the recent price decline. The firm's total crypto, cash, and strategic investment holdings stand at $9.6 billion, according to its latest statement. Bitmine confirmed it remains on track to reach its 5% ownership goal later this year without revising its supply target.

The purchase marks a notable divergence from other digital asset treasury firms, many of which paused accumulation since October as prices weakened. Bitmine's continued buying during the downturn positions it to capture a growing share of Ethereum's staking rewards and transaction fees as institutional tokenization and AI-driven economic activity drive demand for neutral blockchain infrastructure.

This article is for informational purposes only and does not constitute investment advice.