BitMine Buys $74 Million More in Ethereum

While most institutional investors bet on bitcoin, BitMine chooses a different path. This tech giant listed on the stock exchange has just strengthened its position on Ethereum with a purchase of 74 million dollars. For many crypto analysts, this choice contrasts with the Strategy approach. But not only! It could also redefine Ethereum’s place (currently considered the second largest cryptocurrency worldwide) in company balance sheets.

Ethereum: BitMine Approaches Its Goal of 5% of Supply

According to data published on July 5, BitMine now holds 5,742,237 ETH. This represents an increase of 42,197 tokens compared to its previous report. The reference price is about $1,759 per token at the time of declaration. This means that the latest Ethereum purchase by BitMine amounts to nearly 74 million dollars.

This announcement is particularly important as it places BitMine at 4.8% of the Ethereum supply. Thus, the company has already covered about 95% of the path towards its stated goal: 5% of the total crypto treasury of the network.

It is even evident that BitMine’s buying pace has accelerated significantly compared to the previous week. The data shows the acquisition of only 27,084 ETH then. However, this latest acquisition remains lower than the six-figure pace that BitMine Immersion Technologies maintained earlier this year.

Good to know: the group’s total holdings now reach $11.1 billion. These include its stakes in Beast Industries and Eightco Holdings, cash, crypto assets, and various investments.

Ethereum Outperforms Bitcoin Thanks to the CLARITY Act

According to data, Ethereum outperformed Bitcoin by 6% last week. BitMine chairman Tom Lee attributes this momentum to growing optimism among crypto investors about the imminent adoption of the Clarity Act. On Polymarket, for example, the likelihood that this legislation will be passed by the end of the year is evaluated at about 48 to 50%. This is the highest level in two weeks.

Some crypto figures hope for a vote by the end of summer. This is notably the case for Scott Benson. Note that this bill requires 60 votes to pass. This threshold is uncertain given reservations from several Democratic lawmakers on ethical questions.

For his part, Lee said:

We believe that regulatory clarity is an important step that will allow cryptocurrencies, and particularly smart contract platforms like Ethereum, to benefit from their growing integration into our daily lives.

According to him, the increase in the ETH/BTC ratio in recent days is a sign: the crypto market already anticipates a more favorable adoption of the legislation. To support this thesis, Tom Lee even cites the growing use of Layer 2 Ethereum networks. They now process USDC transactions for players like Shopify and Visa.

Breakdown: the technology is already integrating into mainstream payment infrastructures.

Ethereum Staking: BitMine’s Financial Engine Versus Strategy

Strategy has just sold 3,588 BTC for about 216 million dollars to:

• finance its dividends;
• keep a reserve of 2.55 billion dollars.

BitMine’s strategy is quite different. It finances its own distributions through the yield generated by Ethereum staking.

Of its 5.74 million ETH, 4,879,157 tokens are currently staked via the MAVAN platform. This equates to roughly 8.8 billion dollars, or 85% of the company’s total holdings. The seven-day staking yield stands at 2.68% annualized. This has generated a projected income of 235 million dollars per year. This figure could rise to 277 million dollars once all positions switch to MAVAN. This revenue stream funds the BMNP preferred stock payment, whose weekly dividend reaches a rate of 9.5%.

Thus, BitMine and Strategy display two distinct philosophies in crypto treasury management:

• on one side, selling assets to meet financial commitments;
• on the other, generating native yield via Ethereum without having to liquidate the principal capital.

A Notable Point: Ethereum Rises, but BitMine Stock Remains Under Pressure

Despite this favorable momentum on Ethereum, the BMNR stock still struggles to convince financial markets. The proof: the stock currently trades 49.3% below its 200-day moving average. Data also highlight the formation of a death cross since January. Even worse! June recorded the annual low, close to $12.80.

For investors tracking BMNR, the 20-day moving average level at $15.23 constitutes the first resistance to overcome to trigger a sustainable technical rebound. Conversely, a break below June’s low would reopen the path to a new bearish phase, with no major support identified below this threshold.

This discrepancy between the conviction shown on Ethereum by management and BitMine’s market valuation illustrates ongoing market caution toward crypto treasury strategies, even when the underlying token’s fundamentals improve.

In any case, BitMine’s accumulation of Ethereum reflects a bet on American regulatory clarity. It remains to be seen if the Senate will approve the CLARITY Act. This awaited vote could sustainably redefine the balance between Bitcoin and Ethereum in the crypto market.