Bitmine nears 5% of Ethereum supply despite $8.4B in unrealized losses
Tom Lee’s Ethereum treasury company keeps buying the second-biggest crypto through the downturn, while more than 5 million staked ETH is projected to generate $287 million in annual rewards.
Tom Lee's Ethereum treasury company, Bitmine Immersion Technologies, is nearing its goal of owning 5% of Ethereum's supply despite significant losses. The company acquired 9,926 Ether (ETH) in the week ending Aug. 16, increasing its holdings to approximately 5.82 million ETH, or 4.8% of the circulating supply. At a reference price of $1,893, Bitmine's ETH holdings are valued at around $11 billion.
However, much of this value is based on higher past prices. Bitmine is within reach of its "Alchemy of 5%" target of holding 5% of the total ETH supply. The company has endured a prolonged bear market for Ether, resulting in over $8.4 billion in unrealized losses, equivalent to about 43% of its portfolio value. Nevertheless, Bitmine continues to accumulate Ether, making weekly purchases since launching its ETH treasury strategy in June 2025.
Despite the large unrealized losses on its Ether holdings, the company's staking operations generate yield. With over 5 million ETH staked, worth roughly $9.6 billion, Bitmine projects annualized staking rewards of approximately $287 million based on a 2.61% yield.
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