Tom Lee’s Bitmine Adds 52,203 ETH as $10B Position Sits $9.5B Underwater
Tom Lee’s Bitmine Immersion Technologies purchased an additional 52,203 ETH last week, worth roughly $92 million, pushing its total Ethereum holdings to 5.67 million tokens. The company now owns 4.7% of all ETH in circulation, according to a June 21 press release.
Bitmine’s $9.5 Billion Paper Loss
Bitmine valued its Ethereum position at about $10 billion, using a Coinbase-quoted price of $1,733 per ETH. However, the company’s average purchase cost is approximately $3,440 per token. At current market prices, that leaves the position showing a paper loss exceeding $9.5 billion.
Also read: Ethereum Nears First Three-Quarter Losing Streak as ETH Trades Near $1,725
Despite the unrealized loss, Bitmine continues to accumulate. The company said it is now 94% of the way toward its “Alchemy of 5%” target — holding 5% of Ethereum’s total supply of 120.7 million tokens — after 11 months of building its treasury.
Staked ETH and Treasury Breakdown
Of its total ETH holdings, 4,718,677 tokens are currently staked, valued at roughly $8.2 billion. The staked assets are tied to MAVAN, the company’s Made in America Validator Network.
Also read: Ethereum Holders Face Rare, Prolonged Losses as Price Hovers Near March 2021 Level
Beyond Ethereum, Bitmine reported holding 205 Bitcoin and $601 million in cash and marketable securities. The company also holds a $180 million stake in Beast Industries and a $104 million stake in Eightco Holdings, which Bitmine said provides public market investors indirect exposure to OpenAI.
Preferred Stock and Investor Backing
Bitmine’s Series A Preferred Stock began trading on the NYSE under the symbol BMNP after the company closed an offering on June 10. Bitmine sold 3.5 million preferred shares at $80 each, netting approximately $273.8 million. The preferred stock carries a 9.50% dividend rate with weekly payments.
The company said it remains backed by prominent institutional and individual investors, including ARK’s Cathie Wood, Founders Fund, Pantera, Kraken, DCG, Galaxy Digital, and Tom Lee, who chairs Bitmine. Lee has said the company is focused on long-term crypto accumulation.
Frequently Asked Questions
How much ETH does Bitmine now own?
Bitmine holds 5,672,956 ETH, which represents approximately 4.7% of Ethereum’s total supply.
What is the ‘Alchemy of 5%’ goal?
It is Bitmine’s stated goal to acquire 5% of the total supply of Ethereum. The company is currently 94% of the way toward that target.
Who are some notable investors backing Bitmine?
Bitmine is backed by institutional and individual investors including ARK’s Cathie Wood, Founders Fund, Pantera, Kraken, DCG, and Galaxy Digital.
