【BitMine nears 5% of ETH supply, but its weekly buying pace has slowed noticeably】
BitMine added 8,573 $ETH last week, bringing its holdings to approximately 6.06 million, nearing its target of holding 5% of the total supply. According to previously disclosed data, the company has staked approximately 5.227 million ETH, or about 86% of its holdings. This means it is not merely accumulating coins, but also locking a large amount of ETH into the validator system and continuously earning staking rewards.
At an estimated annualized yield of 3.58%, the staking returns are indeed substantial. However, the rewards are denominated in ETH, so their value in U.S. dollars will also shrink if the coin’s price falls. More importantly, BitMine’s holdings have grown large enough to influence market expectations for ETH supply and demand: continued buying absorbs circulating tokens, while staking reduces the supply available for trading at any time.
This kind of long-term treasury demand is positive for ETH’s supply-and-demand fundamentals. But adding just 8,573 last week shows that the scale of its buying will still vary with financing and market conditions. BitMine nearing its 5% target is a positive long-term narrative; what will truly determine ETH’s trajectory is whether it can continue absorbing tokens and whether market demand can keep pace.
BitMine added 8,573 $ETH last week, bringing its holdings to approximately 6.06 million, nearing its target of holding 5% of the total supply. According to previously disclosed data, the company has staked approximately 5.227 million ETH, or about 86% of its holdings. This means it is not merely accumulating coins, but also locking a large amount of ETH into the validator system and continuously earning staking rewards.
At an estimated annualized yield of 3.58%, the staking returns are indeed substantial. However, the rewards are denominated in ETH, so their value in U.S. dollars will also shrink if the coin’s price falls. More importantly, BitMine’s holdings have grown large enough to influence market expectations for ETH supply and demand: continued buying absorbs circulating tokens, while staking reduces the supply available for trading at any time.
This kind of long-term treasury demand is positive for ETH’s supply-and-demand fundamentals. But adding just 8,573 last week shows that the scale of its buying will still vary with financing and market conditions. BitMine nearing its 5% target is a positive long-term narrative; what will truly determine ETH’s trajectory is whether it can continue absorbing tokens and whether market demand can keep pace.
