BitMine Buys $105M in ETH to Kick Off 2026, Surpasses 3.36% Supply Threshold

BitMine Immersion Technologies (BMNR) has started 2026 by acquiring $105 million worth of Ethereum, signaling continued confidence in the asset's long-term potential. This purchase follows a recent staking expansion that has pushed the company's staked ETH value beyond $2.87 billion.

The new acquisition brings BitMine's total ETH holdings to 4.07 million tokens, valued at approximately $12.6 billion, representing 3.36% of the total supply. This is part of a broader strategy to reach 5% ownership of ETH by leveraging its corporate treasury and staking initiatives.

BitMine's ETH accumulation comes alongside a $915 million cash reserve, which could be used for further purchases as the company advances its target.

Why Did This Happen?

BitMine's CEO Tom Lee sees a potential price rebound for ETH in the second half of 2026, despite expecting a drawdown to around $1,800 in the first half. The company's aggressive accumulation and staking strategy is designed to benefit from long-term price appreciation and generate yield.

The company has also expanded its staking activity, with recent additions pushing the total staked ETH value to over $2.87 billion. This strategy is expected to generate substantial annual rewards, with BitMine projecting over $1 million in daily yield once all holdings are staked.

How Did Markets React?

BitMine's share price has been volatile, with a 20.3% increase in early 2026 after it proposed a massive increase in authorized shares. This move is intended to provide more capital flexibility for further Ethereum purchases and business expansion.

The stock now ranks among the most actively traded in the US, with daily trading volume averaging $980 million. Institutional support from names like ARK Invest and Kraken has added credibility to the company's strategy.

What Are Analysts Watching Next?

Investors are closely watching the company's upcoming annual meeting on January 15, 2026, where the share increase will be decided. While the proposal could support BitMine's growth, it also raises concerns about potential dilution.

Analysts from Simply Wall St have noted a wide range of fair value estimates for BMNR, from $0.18 to $130, highlighting the uncertainty surrounding the stock's future performance.

BitMine's concentrated Ethereum strategy has also drawn attention from the broader market. With Ethereum showing signs of recovery and altcoins like XRP seeing increased institutional interest, BitMine's position could be pivotal in shaping 2026's crypto landscape.

BitMine's strategic moves reflect a broader trend in the crypto market, where institutional players are increasingly looking to staking and treasury management to generate yield. The company's ability to execute on its 5% target and manage dilution will be key factors for investors in the months ahead.