BitMine Nears 5% ETH Target as Buying Slows and Stock Buys Surge

Woofun AI reports that BitMine is signaling a strategic deceleration in its Ethereum accumulation campaign, despite being just $482 million away from securing a 5% stake in the total supply.

This shift in momentum suggests that management is prioritizing capital allocation efficiency over rapid asset aggregation, even as the firm remains the largest publicly disclosed corporate holder of ETH. The slowdown in purchasing velocity contrasts with a simultaneous surge in share repurchases, indicating a recalibration of treasury strategy.

As of July 20, the company’s holdings stood at 5,777,468 ETH, following the addition of 7,430 tokens during the preceding week. This latest acquisition, costing approximately $14 million, represents one of BitMine’s smallest weekly allocations to date. Based on an estimated circulation of 120.7 million ETH, a 5% position requires 6.035 million tokens. Consequently, BitMine remains 257,532 ETH short of its target, a gap that has narrowed significantly but persists as the final hurdle in its accumulation phase.

The reduction in purchase volume is stark when compared to previous periods. The recent 7,430-token buy was 73% smaller than the 27,801 ETH acquired the week prior. This follows a period of aggressive buying, where purchases totaled nearly 70,000 ETH during the first two weekly reporting periods of July.

Structurally, this deceleration coincides with a massive expansion in the company’s share count. As of May 31, outstanding common shares reached 579.7 million, more than doubling from 232.4 million at the end of August 2025. This equity issuance was primarily used to fund the aggressive ETH purchases, creating a dilution effect that the current 5.5 million-share repurchase program only partially offsets.

Per Woofun AI, the company’s combined cryptocurrency, cash, marketable securities, and strategic investments were valued at $11.5 billion as of July 19. This treasury size solidifies BitMine’s position as the second-largest public digital asset holder, trailing only Strategy, which holds 843,775 BTC valued at approximately $55 billion. The disparity in asset classes highlights the divergent strategies between Bitcoin-focused and Ethereum-focused corporate treasuries, with BitMine leveraging its equity base to capture a significant portion of the ETH supply.

To generate yield on its holdings, BitMine has staked 4,917,189 ETH, representing about 85% of its total ETH inventory. The firm projects annualized staking revenue of $247 million based on a seven-day yield of 2.67%.

However, this figure is expected to rise to $290 million once all ETH is fully deployed through the MAVAN staking platform and external staking partners. These projections are inherently sensitive to validator performance, ether prices, and fluctuations in Ethereum’s staking yield, introducing variability into the revenue stream.

Despite the potential for substantial staking income, BitMine recorded a net loss of $83.6 million for the quarter. This loss was driven by a $92.1 million hit from derivative contracts, which outweighed the revenue generated by the treasury. The financial performance underscores the risks associated with leveraged positions and market volatility. Ultimately, the company’s profitability remains exposed to token prices, staking yields, derivatives positions, and the ongoing decisions regarding issuing or repurchasing stock. This marks a critical juncture where operational revenue must contend with speculative losses.