BitMine strengthens Ethereum purchases with new $60 million purchase

BitMine ramps up aggressive accumulation of Ethereum in anticipation of 47% stock price collapse and billions of dollars in unrealized losses.

On November 23, blockchain platform Lookonchain reported that wallets linked to the giant company had received 21,537 ETH. The transfer, valued at approximately $60 million, was made through institutional prime broker FalconX.

BitMine doubles Ethereum with staking plan

This new purchase brings BitMine's total holdings to over 3.5 million ETH, representing nearly 3% of the token's circulating supply.

The move marks a defiant commitment to the company's “strategic ETH reserve” strategy, despite the asset's recent price weakness.

In fact, Ethereum is trading around $2,808, down about 29% in the last month. Notably, BitMine's Thomas Lee believed that ETH's recent weakness was due to broader market mechanics rather than a fundamental flaw.

He said the October 10 “liquidity shock” that wiped out nearly $20 billion in leveraged positions from the crypto market was the main factor behind the drawdown.

“In 2022, the post-FTX liquidity shock took eight weeks to resolve, but similar to previous drawdowns, crypto prices recovered quickly. History has shown that crypto prices exhibit V-shaped recoveries after prolonged periods of decline, and we expect this to be the case again with this drawdown.”

As a result, the economic downturn had a major impact on Bitmine's ETH holdings, leaving the company with an estimated $4 billion in paper losses. This divergence has weighed heavily on BitMine's stock price, causing it to drop nearly half its value over the past 30 days.

To offset the pain caused by falling asset prices, Bitmine is effectively rebranding itself from a passive ETH holding company to an active yield generator.

On November 21, the company announced the launch of the “Made in America Validator Network” (MAVAN). The proprietary staking infrastructure is expected to go live in early 2026.

Meanwhile, the company confirmed that it has selected three pilot partners to test its staking operations.

“We plan to partner with one or more of these pilot partners and world-class infrastructure providers to expand our unique ‘Made in America Validator Network’ (MAVAN) in the next quarter… We believe in building the best destination for Ether in the market and are proud to do so with the best partners. We believe that our strategy is best in the long-term best interests of our shareholders as we scale up.”

By staking 3.5 million ETH, BitMine could theoretically generate significant annual revenue from network rewards. This creates a cash flow floor that a pure ownership strategy does not have.

Additionally, the company declared an annual dividend of $0.01 per share, establishing itself as the first large-scale crypto treasury to return capital directly to investors.

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