Bitmine Makes First Foray Into Ethereum Staking

Ethereum (ETH) treasury firm Bitmine has added staking to the list of crypto-related activities that it is engaged in. This comes after the company deposited ETH worth roughly $219 million into Ethereum’s Proof-of-Stake (PoS) system. 

On-chain Data Shows Massive ETH Transfers 

Last Sunday, on-chain analytics platform Arkham Intelligence spotted several transfers of large ETH by multiple wallets linked to Bitmine. 

The transaction was made to a contract labeled “BatchDeposit.” These transfers summed up to 74,880 ETH, which is currently valued at approximately $219.5 million. Noteworthy, a unit of ETH has a current market value of $2,931.84 with a 1.31% dip over the last 24 hours. 

Such transfer patterns are typically associated with institutional staking setups that aggregate funds just before validator creation. This, therefore, led EmberCN to make a post on X, stating that “The largest Ethereum treasury company Bitmine (BMNR) has finally started attempting to stake its held ETH to earn interest income.”

Potential Yield For Bitmine Ethereum Staking

Furthermore, EmberCN noted that this is Bitmine’s first time within the staking niche. With about 4.066 million ETH, the firm boasts an approximate Annual Percentage Yield (APY) of 3.12%. In the instance that this entire bag is put u for staking, the ETH treasury firm could be rewarded with a yield of 126,800 ETH in interest over a year.

Based on the current price of the second-largest cryptocurrency by market cap, this would be worth around $371.7 million.

Bitmine Boasts of Over 4 Million ETH

Meanwhile, Tom Lee’s Bitmine has done a great job at establishing its position in the Ethereum ecosystem. As of December 23, the firm holds more tan 4 million ETH, strongly securing the place of the largest corporate holder of the coin. Around that time, it made a fresh purchase of 13,412 ETH, worth over $40 million.

In fact, the company added 98,852 ETH to its balance across seven days, with all the coins purchased at an average price of $2,991. It is quite clear that the firm has a strong long-term commitment to Ethereum, even in the midst of some price volatility. Interestingly, this die-hard ETH accumulation strategy was launched about 5.5 months ago.

Bitmine plans to own 5% of Ethereum’s total supply and so far, it has hit 67% of this goal.