BitMine is a company that used to focus on crypto mining. Now it mainly builds and manages a huge Ethereum treasury. Recently Ethereum dropped to its lowest price in many months. It even fell below 2800 dollars. But instead of slowing down BitMine bought even more ETH for its reserves.
A blockchain tracking firm called Lookonchain noticed that a wallet tied to BitMine bought more than twenty one thousand ETH on November twenty three. BitMine made the purchase through FalconX which is a digital asset broker it has worked with many times before. The value of this buy was close to sixty million dollars at that moment.
After this move BitMine now holds more than three point six million ETH. This pile is worth over ten billion dollars right now. No other company comes close. BitMine controls almost three percent of all Ethereum that exists. The second biggest holder SharpLink has a little over eight hundred fifty nine thousand ETH which is far behind.
Ethereum has fallen almost thirty percent in the past month. Still BitMine keeps buying the dip. This latest purchase is not the first one this month. On November three the company bought eighty two thousand ETH. Around mid November it added another fifty four thousand. And now it has made this new buy of more than twenty one thousand ETH.
But this strategy comes with some pain. Because ETH has not been performing well the value of BitMine’s huge bags has dropped a lot on paper. Reports say the company may now be sitting on more than four billion dollars in unrealized losses. Investors are worried and it shows in the stock price. BitMine’s shares have crashed more than eighty percent since Ethereum hit its all time high in August near five thousand dollars.
Back when the company released its annual report things looked very different. BitMine had strong profits and a positive outlook. It earned three hundred twenty eight million dollars and reported earnings of more than thirteen dollars per share. It even gave out a small dividend of one cent per share which was a big moment for its shareholders.
Analysts say the falling ETH price is not the only challenge. The staking yield for Ethereum is very low right now. It is just two point nine percent. Traditional money market funds in US dollars give a higher return. Some experts say no serious institution will accept such a low yield especially when ETH’s price keeps moving so much.
Even with all these problems BitMine is still following its long term plan. It has started something called the Made in America Validator Network. It is also called MAVAN. This project aims to move BitMine from simply holding ETH to actively staking it. That way the company can earn rewards from the Ethereum network. MAVAN is still in its testing phase with three partners. It is expected to fully launch in early twenty twenty six.