Ethereum News Today: BitMine Becomes Largest ETH Holder After 16-Day $2.1 Billion Acquisition

Bitcoin mining firm BitMine Immersion Technologies has acquired 566,776 Ether (ETH)—valued at over $2.1 billion—within 16 days, reclaiming the position as the largest corporate holder of ETH. The purchase, announced on July 17, positions BitMine ahead of SharpLink Gaming (360,807 ETH) and the Ethereum Foundation (237,500 ETH) in strategic reserves. The firm’s chairman, Tom Lee, stated the move is accelerating progress toward its goal of acquiring and staking 5% of the total ETH supply, a target requiring approximately 6 million tokens valued at $22 billion at current prices. Unlike Bitcoin’s fixed supply, ETH’s circulating supply fluctuates due to network activity such as token burns or new issuance, complicating long-term ownership projections [1].

The aggressive buying spree has reshaped market dynamics. SharpLink Gaming, which had recently expanded its ETH holdings to 360,807 tokens in May, saw its lead overtaken by BitMine. Both firms experienced stock price surges following their ETH-related announcements: BitMine’s shares (BMNR) spiked over 3,000% to $135 on July 3, while SharpLink’s (SBET) stock rose 171% to $79.21 in late May [1]. The gains reflect investor optimism around corporate adoption of digital assets, though analysts caution that liquidity constraints and price volatility remain risks.

Strategic reserves across 61 entities now hold 2.31 million ETH—1.91% of the total supply—valued at $8.46 billion. This dwarfs Bitcoin’s institutional holdings, where 3.4 million BTC (16.5% of supply) is controlled by 206 firms at a valuation exceeding $408 billion. The disparity underscores ETH’s untapped potential as a treasury asset, despite its dynamic supply model. BitMine’s $2.1 billion acquisition accounts for nearly a quarter of the $8.46 billion in ETH strategic reserves, intensifying competition among firms to secure a share of the digital asset [1].

Lee’s stated objective of controlling 5% of ETH’s supply would require an additional $20 billion in acquisitions, assuming stable prices. However, the token’s variable supply introduces uncertainty. For context, Michael Saylor’s MicroStrategy holds 607,770 BTC (2.9% of Bitcoin’s supply), a milestone achieved in a market with a fixed 21 million token cap. ETH’s fluid supply means burning or issuance could alter the required token count, making long-term targets challenging to achieve [1].

The rapid consolidation of ETH in corporate hands raises questions about market liquidity and price sensitivity. With BitMine’s acquisition representing a significant portion of strategic reserves, further buying could exacerbate supply-side pressures. This trend mirrors Bitcoin’s institutional adoption but operates in a more volatile environment, given Ethereum’s ongoing upgrades and regulatory scrutiny.

Source: [1] [BitMine Is Largest Ether Holder After 16-Day Blitz] [https://cointelegraph.com/news/bitmine-is-largest-ether-holder-after-16-day-blitz]