BitMine Stakes Ethereum Worth $227M as Exchange Supply Shrinks

BitMine Immersion, led by Tom Lee, has recently increased its long-term bet on Ethereum (ETH) by staking a large amount of the digital asset.

At the same time, the amount of Ethereum available on crypto exchanges keeps falling. This shows that supply is tightening, which could affect Ethereum’s future price.

BitMine Expands Its Ethereum Staking Plan

BitMine continues to grow its position as the largest company holding Ethereum. It is buying more ETH and staking a large portion of it. This move shows that BitMine is focused on long-term growth, not short-term price changes. 

Recently, the company staked 86,848 ETH, worth about $277 million. By doing this, BitMine increases its exposure to Ethereum and earns rewards from staking.

In a recent X post, blockchain tracker Lookonchain shared that BitMine now has about 1.77 million ETH staked, valued at roughly $5.66 billion. Even when prices move up and down, the company keeps locking up large amounts of Ethereum. This shows strong belief in Ethereum’s future.

BitMine Keeps Buying ETH Despite Market Swings

BitMine has continued to buy Ethereum without slowing down. It recently added 24,000 ETH, bringing its total Ethereum holdings to around $4.17 billion. This makes it one of the most active big buyers of Ethereum today.

Tom Lee says BitMine is bringing in more new institutional capital into Ethereum than any other firm. He also shared that once MAVAN starts full operations, BitMine plans to become the largest staking provider in the entire crypto market.

Staking is also an important part of BitMine’s financial plan. The company has about $4 billion in debt and suffered paper losses when Ethereum traded below $3,000. Instead of selling, BitMine chose to stake more ETH to earn regular income.

This strategy helps reduce losses during weak market periods while keeping a long-term position in Ethereum. Lee remains confident that Ethereum’s strong foundation will lead to better performance over time.

Institutional Demand Pushes Ethereum Staking Higher

More big investors are now staking Ethereum, pushing total staked value to about $118 billion. Other companies building large Ethereum reserves include SharpLink, the Ether Machine, and ETHZilla.

These firms prefer holding Ethereum for the long term instead of trading it quickly. This removes more ETH from the open market.

As institutions continue to buy and stake Ethereum, the amount left on centralized exchanges keeps dropping. Data from CryptoQuant shows exchange balances are now around 16.3 million ETH.

This falling supply suggests that Ethereum is becoming harder to find on the market. With fewer tokens available and demand rising, Ethereum could see stronger prices over time. 

While short-term drops are still possible, the steady buying and staking point to a positive long-term outlook.