Ethereum treasury company BitMine disclosed that, as of September 27, it holds 6,001,302 ETH, representing about 4.9% of the circulating supply. It is only about 100,000 ETH away from the company’s long-promised 5% target. At the rate of adding 17,362 ETH from last week, it could take roughly six weeks to reach it.
But what really matters isn’t just this number—it’s how much ETH it has effectively pulled off the market. Of the 6 million coins, about 5.07 million (84%) have already been put into staking. Meanwhile, the amount of ETH held in exchanges has fallen to around 3.5% of the circulating supply, which is at a historical low. In other words, more than 80% of this batch is unlikely to return to the order book in the short term.
My view is: the impact of this on $ETH is overestimated in the short term and underestimated in the medium term. It’s overestimated short term because the weekly buys of 17,000-plus ETH are just a small fraction compared with daily average trading volume—and this is already the lowest weekly net accumulation since August 17, with the pace of buying slowing down. It’s underestimated in the medium term because the treasury-company buying is one-way—they almost never sell during price rallies. That’s essentially a permanent removal of a layer of float. With less supply on the market, the same amount of buying can drive bigger price elasticity.
The key metric to watch instead is a contrarian one: the money BitMine uses to buy coins mainly comes from ATM share issuance of $BMNRB . If the stock price falls below net asset value, that issuance effectively means swapping cheap shares for expensive ETH, and the pace of buying will drop immediately. So the treasury company’s “backstop” is provided by the stock price, not by belief.
What do you think—are these 6 million ETH a long-term positive for $ETH , or are they shifting the risk from token holders to the shareholders of the listed company?
#BitMine Ethereum holdings surpass 6 million ETH
But what really matters isn’t just this number—it’s how much ETH it has effectively pulled off the market. Of the 6 million coins, about 5.07 million (84%) have already been put into staking. Meanwhile, the amount of ETH held in exchanges has fallen to around 3.5% of the circulating supply, which is at a historical low. In other words, more than 80% of this batch is unlikely to return to the order book in the short term.
My view is: the impact of this on $ETH is overestimated in the short term and underestimated in the medium term. It’s overestimated short term because the weekly buys of 17,000-plus ETH are just a small fraction compared with daily average trading volume—and this is already the lowest weekly net accumulation since August 17, with the pace of buying slowing down. It’s underestimated in the medium term because the treasury-company buying is one-way—they almost never sell during price rallies. That’s essentially a permanent removal of a layer of float. With less supply on the market, the same amount of buying can drive bigger price elasticity.
The key metric to watch instead is a contrarian one: the money BitMine uses to buy coins mainly comes from ATM share issuance of $BMNRB . If the stock price falls below net asset value, that issuance effectively means swapping cheap shares for expensive ETH, and the pace of buying will drop immediately. So the treasury company’s “backstop” is provided by the stock price, not by belief.
What do you think—are these 6 million ETH a long-term positive for $ETH , or are they shifting the risk from token holders to the shareholders of the listed company?
#BitMine Ethereum holdings surpass 6 million ETH