5.23 million ETH locked in staking—a company has staked 86.5% of its holdings
🗣️ 你的看法呢，群里说
BitMine has staked another 159,728 ETH, worth about $390 million at current prices, bringing its total staked amount to 5.23 million ETH, or 86.5% of its entire holdings. The company is chaired by Wall Street strategist Tom Lee 🐋
Its total Ethereum treasury stands at around 6.04 million ETH, worth roughly $14.7 billion at $2,436 per ETH. In other words, it has locked up almost all the ETH it can, leaving less than 14% unstaked.
My take: This isn’t simply a bullish bet. It’s a trade-off—giving up liquidity in exchange for yield 🦖
Let’s do the math. At a 2.6% annual staking yield, 5.23 million ETH would generate around $330 million in gross annual returns. That sounds like a lot, but the trade-off is that these coins can’t be sold at any time. To exit, it would have to wait in the unstaking queue. If prices really fall, it can only watch.
More importantly, yields themselves are declining. The amount of ETH staked across the network has hit a record, and the annualized staking yield has fallen to 2.6%—well below the 3% to 4% many people remember. The more BitMine stakes, the more it’s putting up in principal to earn a thinner return.
Here’s another twist: investors seeking staking returns must either run their own validator nodes or buy publicly traded companies like this one that stake their treasury assets. There aren’t many products on the market that can meet this demand, which is also why its shares can trade at a premium or a discount.
But the 86.5% figure also shows that it’s running low on ammunition. To increase its position further, it would have to issue shares or debt, or wait for staking rewards to accumulate. It doesn’t have much room left to maneuver ⚠️
For everyday holders, what’s worth watching isn’t how much more it buys, but two things: first, as the ETH staking rate continues to rise, will the annualized yield fall below 2.5%? Second, how large a discount will the company’s share price trade at relative to its net asset value? That’s where the market’s true verdict will show.
Do you think locking up 80% of its holdings in staking is a victory for institutional long-termism, or just pushing the risks further down the road?
Tap the profile picture to watch the livestream
Every day, we bring you the latest Ethereum and institutional capital trends—not just what’s happening, but the logic and opportunities behind it 👀🚀
🗣️ 你的看法呢，群里说
BitMine has staked another 159,728 ETH, worth about $390 million at current prices, bringing its total staked amount to 5.23 million ETH, or 86.5% of its entire holdings. The company is chaired by Wall Street strategist Tom Lee 🐋
Its total Ethereum treasury stands at around 6.04 million ETH, worth roughly $14.7 billion at $2,436 per ETH. In other words, it has locked up almost all the ETH it can, leaving less than 14% unstaked.
My take: This isn’t simply a bullish bet. It’s a trade-off—giving up liquidity in exchange for yield 🦖
Let’s do the math. At a 2.6% annual staking yield, 5.23 million ETH would generate around $330 million in gross annual returns. That sounds like a lot, but the trade-off is that these coins can’t be sold at any time. To exit, it would have to wait in the unstaking queue. If prices really fall, it can only watch.
More importantly, yields themselves are declining. The amount of ETH staked across the network has hit a record, and the annualized staking yield has fallen to 2.6%—well below the 3% to 4% many people remember. The more BitMine stakes, the more it’s putting up in principal to earn a thinner return.
Here’s another twist: investors seeking staking returns must either run their own validator nodes or buy publicly traded companies like this one that stake their treasury assets. There aren’t many products on the market that can meet this demand, which is also why its shares can trade at a premium or a discount.
But the 86.5% figure also shows that it’s running low on ammunition. To increase its position further, it would have to issue shares or debt, or wait for staking rewards to accumulate. It doesn’t have much room left to maneuver ⚠️
For everyday holders, what’s worth watching isn’t how much more it buys, but two things: first, as the ETH staking rate continues to rise, will the annualized yield fall below 2.5%? Second, how large a discount will the company’s share price trade at relative to its net asset value? That’s where the market’s true verdict will show.
Do you think locking up 80% of its holdings in staking is a victory for institutional long-termism, or just pushing the risks further down the road?
Tap the profile picture to watch the livestream
Every day, we bring you the latest Ethereum and institutional capital trends—not just what’s happening, but the logic and opportunities behind it 👀🚀