Although Ethereum (ETH) has fallen below US$3,000, even surpassing its opening price at the beginning of 2026, ETH staking activity is actually setting record highs. One of the most aggressive participants is BitMine, a company listed on the NYSE (BMNR) and led by CEO Tom Lee.
This development raises an important question: Can BitMine become a major catalyst for ETH, or will it instead pose significant risks, especially as market sentiment filled with fear begins to return?
BitMine Enhances Ethereum Accumulation and Staking in January
BitMine has just announced that they have purchased more than 40,000 ETH in the past week. According to CoinGecko data, the company now holds over 4.2 million ETH, valued at more than US$12.4 billion. This amount represents more than 3.5% of the total Ethereum supply.
This move aligns with BitMine's long-standing goal of acquiring 5% of the total Ethereum supply.
The chart shows consistent buying accumulation since mid-last year to now, with no clear signs of slowing down.
CEO Tom Lee expressed his high confidence in the future of Ethereum after listening to discussions among world leaders and policymakers in Davos.
“In 2016, the story in Davos was about AI and the fourth industrial revolution. Over the next decade, AI and data centers evolved rapidly, with many countries changing their strategies. Ten years later, 2026 is the year when policymakers and world leaders view digital assets as the centerpiece of the future financial system. As Larry Fink once stated, this is very positive for smart blockchain. Ethereum remains the most widely used blockchain on Wall Street and the most reliable, with no downtime since its launch,” explained Lee.
Moreover, Lookonchain revealed that Tom Lee through BitMine has staked an additional 209,504 ETH—worth around US$610 million—in a single day. The total ETH staked by BitMine now reaches 2,218,771 ETH, valued at approximately US$6.52 billion. This amount represents more than 52% of the total ETH holdings of the company.
Meanwhile, Validator Queue data shows that the incoming ETH queue for validator participation has reached a record high, exceeding 3.3 million ETH.
A previous BeInCrypto report indicated that the total ETH staked has surpassed 36 million, equivalent to 30% of the total supply. If ETH currently queued for validator entry is counted, this figure could soon approach 40 million ETH.
What is Analysts' Prediction about the Impact of BitMine on ETH Prices?
Milk Road analysts reported that one entity, BitMine, controls about 3.52% of the circulating supply of Ethereum. BitMine's strategy is not just 'buy and hold.' The company focuses on large-scale accumulation combined with generating yield through staking. This scale of purchasing creates sustained demand that helps keep ETH prices within the upward channel.
“This is the type of institutional accumulation that keeps $ETH within its upward channel. More importantly, it helps draw prices back to that channel during macro shocks that temporarily push it out,” explained Milk Road.
On-chain data supports this view. When the supply of ETH in the spot market decreases due to increased accumulation and staking, price support becomes stronger.
Nonetheless, analysts also caution about the significant risks of excessive concentration. BitMine began purchasing ETH in July 2025, but since the peak in August, ETH has dropped more than 40%.
According to BitMine's disclosures, their average cost of ETH ownership is US$2,839 per ETH. With the current price of ETH nearing US$2,900, the company is only making a slim profit margin and could quickly incur losses if the downward trend continues.
Analysts at Seeking Alpha argue that excessive exposure to ETH creates extreme risks, especially when combined with the potential dilution of shares.
“Management encourages shareholders to approve an amendment to the articles of incorporation that increases the number of authorized shares from 500 million to 50 billion. Although this authorization does not guarantee immediate issuance, it essentially gives the green light for management to issue new shares in nearly unlimited quantities,” explained RI Research analysts from Seeking Alpha.
The recent shareholders' meeting also drew controversy. The newly appointed CEO and CFO were absent, and the promised guest speaker was nowhere to be seen. Additionally, a controversial US$200 million investment in MrBeast's media business—which has no connection to BitMine's core blockchain strategy—raised concerns about management's focus and capital allocation priorities.
The long-term effectiveness of BitMine's strategy is still uncertain. However, as their ownership of Ethereum approaches 5% of the total supply, the company starts to become an important variable in the price dynamics of ETH—which investors should closely monitor alongside broader market conditions.
