BitMine's 'Alchemy of 5%' Drives Ethereum Supply Grab

BitMine Immersion Technologies, a prominent corporate Ethereum (ETH) treasury operator, has disclosed that its holdings now exceed 2% of the cryptocurrency’s total supply, with 2.416 million ETH valued at approximately $10.1 billion as of September 21, 2025. The company simultaneously announced a $365 million capital raise through a stock offering priced at $70 per share, a 14% premium to its closing price on September 19, alongside warrants that could generate an additional $913 million if fully exercised. This move underscores BitMine’s aggressive strategy to accumulate ether, with Chairman Tom Lee outlining a long-term goal of securing 5% of the circulating ETH supply—a target he refers to as the “alchemy of 5%.”

The firm’s total assets now stand at $11.4 billion, including 192 bitcoin (BTC), a $175 million equity stake in Eightco Holdings, and $345 million in cash. BitMine has positioned itself as the largest public holder of ETH and the second-largest corporate crypto treasury globally, trailing only Michael Saylor’s Strategy Inc. (MSTR), which holds over 639,000 BTC. Lee emphasized that the funds raised will prioritize expanding ETH reserves, leveraging the premium pricing to boost shareholder value. “The convergence of Wall Street’s blockchain adoption and AI-driven token economies is creating a supercycle for Ethereum,” Lee stated, citing the asset’s central role in the evolving financial ecosystem.

Institutional demand for Ethereum treasuries has intensified, with BitMine’s latest acquisitions adding 264,378 ETH ($1.1 billion) to its holdings since early September. The company’s treasury now surpasses those of other major players, including SharpLink Gaming (838,150 ETH) and The Ether Machine (495,360 ETH). Analysts attribute this trend to Ethereum’s growing utility in decentralized applications and its appeal as a strategic reserve asset. Paul Barron, a crypto commentator, noted that BitMine’s rapid accumulation—combined with record staking activity (35.6 million ETH locked in staking)—could exacerbate liquidity constraints, reigniting concerns of a supply crunch akin to the 2021 bull market.

Market dynamics further highlight Ethereum’s tightening supply. Over 29% of ETH is currently staked, while exchange liquidity hovers near 11 million coins. BitMine’s purchases have accelerated this trend, with Barron estimating that the firm could acquire an additional 4.1 million ETH by year-end. Such demand, he argued, could drive prices beyond $8,000 and potentially reach $15,000 by December 2025 if institutional participation expands. Meanwhile, the validator exit queue has declined to 616,898 ETH, signaling reduced selling pressure and heightened confidence in Ethereum’s long-term value proposition.

BitMine’s capital-raising efforts reflect broader institutional interest in crypto treasuries. Cathie Wood’s ARK Invest and other major investors have backed the company, while public companies increasingly allocate capital to Ethereum strategies. Lee framed the 14% premium on the stock offering as a vote of confidence, stating it aligns with growing demand for blockchain integration in financial infrastructure. The offering, expected to close on September 23, could generate up to $1.28 billion in total proceeds, with warrants providing flexibility for future expansion.

The press release concludes with a cautionary note on market volatility, as BMNR shares traded at $55.79 on September 22—a 9% decline for the day. Despite short-term fluctuations, Lee reiterated Ethereum’s macroeconomic significance, predicting it will remain a cornerstone of the next decade’s financial transformation. With over 1.8% of the supply already under its control, BitMine’s trajectory toward 5% underscores the shifting landscape of institutional-grade crypto adoption.