Bitmine’s Bold Bet: Aiming to Control 5% of All Ethereum in Existence

One mining giant is making a play for the network's very foundation.

### The 5% Gambit

Forget just mining blocks—Bitmine is now mining the market itself. The firm's audacious new strategy isn't about incremental growth; it's about accumulating a strategic stake in Ethereum's core asset on a scale rarely seen outside of central bank balance sheets. Grabbing five percent of the total ETH supply isn't a trading position; it's a statement of sovereignty over a chunk of the chain's future.

### The Supply Shock Calculus

This move throws a wrench into classic supply-and-demand models. Every ETH Bitmine pulls off the market and into its vaults is one less token circulating, one less available for DeFi pools, staking, or simple speculation. It's a physical manifestation of the 'digital gold' thesis, executed with the cold precision of a corporate raider—just swap hostile takeovers for limit orders.

### A New Class of Whale

The era of the anonymous 'whale' wallet may be giving way to the age of the institutional behemoth. When a single, known entity targets a double-digit percentage of a major network's native currency, it blurs the line between participant and pillar. It raises questions about decentralization that no white paper elegantly answers, proving that in crypto, the most traditional finance move is sometimes to just buy a frighteningly large piece of everything. After all, why innovate a new financial system when you can just corner the market on the old one's digital successor?

Bitmine intends to hold 5% of Ethereum’s total supply

On-chain analyst EmberCN commented on Bitmine’s staking, saying, “The largest ethereum treasury company BitMNR (BMNR) has finally started attempting to stake its held ETH to earn interest income. […] This is their first time staking, and they now hold 4.066 million ETH, with an approximate APY of 3.12%. If all of it were staked, they could earn about 126,800 ETH in interest over a year, which at the current price of $2,927 would be worth $371 million.”

Since June, the firm has been performing exceptionally well, with shares surging 606%, as investors back the company’s concentrated exposure to Ethereum’s long-term value. The firm’s chairman, Tom Lee, affirmed their success, noting that the firm is consistently increasing its Ethereum exposure, reaching 4 million tokens just five and a half months after rolling out the plan. 

The company still plans to hold 5% of all Ether in circulation. Currently, it holds about 3.37% of Ethereum’s total supply. Even in November, the company announced that it WOULD start Ether staking in Q1 2026 on its own Made-in-America Validator Network, beginning with an initial pilot effort involving three institutional staking partners. Under the program, the goal would be to create more customer-generated investment value through staking, all in concert with the company’s fundamental accumulation plan.

Tom Lee estimates that Ethereum will reach $7,000 by early 2026

As year-end trading slows, ETH has remained between $2,900 and $3,000. Nonetheless, Lee is hopeful that by early 2026, Ethereum could reach $7,000–$9,000 through tokenization. Ethereum now has a market capitalization of $354 billion and is valued at $2,928, down approximately 1% over the previous 24 hours.

Joseph Chalom, co-CEO of Sharplink Gaming, also expects Ethereum’s total value locked (TVL) to grow tenfold by 2026 as institutions become more committed and new on-chain applications enter the market. Stablecoins are also fueling growth, he said, and he anticipated the market could grow to $500 billion by the end of next year, a 62% bump. With over half of stablecoin transactions hosted on Ethereum, constant issuance and activity could significantly drive its TVL higher. 

He also predicts that the stakes of sovereign wealth funds will rise five to ten times as tokenization expands, while Ethereum remains at the center (or basis) of blockchain development. He also noted that RWAs could surpass $300 billion by 2026, reflecting the increased participation of large financial institutions, including JPMorgan, Goldman Sachs, Franklin Templeton, and BlackRock.

He added, “Ethereum’s stronghold on stablecoins, RWAs, and the future of tokenized equities make it a Core technology asset. It’s not only a bet on the future, it’s a hedge against globalization and technological shifts happening, and ensuring their principals stay involved in the economic upside.”

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