Ethereum (ETH) has fallen below $3,000, dropping below its early 2026 market price. However, ETH staking activity has reached an all-time high. Among the most active participants is BitMine (BMNR), a company listed on the New York Stock Exchange (NYSE) led by CEO Tom Lee.
This issue raises important questions. Could BitMine be a major catalyst for ETH? Or could it pose a significant risk as market sentiment based on fear returns?
BitMine enhances Ethereum accumulation and staking in January.
BitMine recently announced through an official statement that it has purchased over 40,000 ETH in the past week. According to CoinGecko data, the company currently holds over 4.2 million ETH, which exceeds 12.4 billion dollars. This figure accounts for more than 3.5% of the total Ethereum supply.
This trend aligns with BitMine's long-term goal of securing 5% of the total Ethereum supply.
Charts show that consistent buying has continued from mid-last year to the present. There are no clear signs of slowing down.
CEO Tom Lee expressed strong confidence in the future of Ethereum after hearing discussions from leaders and policymakers from around the world at Davos.
In 2016, the key themes at Davos were AI and the Fourth Industrial Revolution. Over the next decade, AI and data centers grew rapidly, and nations shifted their strategies. By 2026, ten years later, policymakers and global leaders recognized digital assets as central to the future financial system. As Larry Fink pointed out, this is positive for smart blockchains. Ethereum is the most widely used blockchain on Wall Street and has never gone down since its launch.” – Tom Lee, CEO of BitMine
Meanwhile, according to Lookonchain, Tom Lee added approximately 209,504 ETH (worth about 610 million dollars) to staking in just one day through BitMine. The total staked ETH by BitMine amounts to 2,218,771 (approximately 6.52 billion dollars). This accounts for over 52% of the company's total ETH holdings.
Additionally, according to Validator Queue data, the waiting list for ETH verifier participation has reached an all-time high, exceeding 3.3 million ETH.
According to a previous report by BeInCrypto, the total staked ETH has surpassed 36 million, accounting for 30% of the total supply. Including ETH currently in the waiting queue, it could soon approach 40 million ETH.
What is BitMine's outlook on the impact on Ethereum prices?
Analyst Milk Road points out that the single entity BitMine controls about 3.52% of the circulating supply of Ethereum. BitMine is focusing on interest generation through large-scale accumulation and staking, going beyond a simple 'buy and hold' strategy. Such large-scale purchases create sustained demand, helping to maintain ETH prices within an upward channel.
“Such steady accumulation by institutions keeps ETH within an upward channel. More importantly, it plays a role in pulling prices back up even when macro shocks temporarily push prices below the channel.” – Milk Road
On-chain data supports this view. As the supply of ETH in the spot market decreases and accumulation and staking increase, price support becomes stronger.
However, analysts are also warning about major risks arising from excessive concentration. BitMine began purchasing ETH in July 2025, but the price of ETH has fallen over 40% from its peak in August.
According to BitMine's disclosure, the average purchase price of its ETH holdings is 2,839 dollars per ETH. Currently, ETH is trading around 2,900 dollars, so the company's profit margin is very low. If the price continues to decline, it could quickly turn into losses.
Analysts affiliated with Seeking Alpha argue that excessive exposure to ETH, especially when combined with potential stock dilution, poses extreme risks.
The management is urging shareholders to approve a charter amendment to increase the number of authorized shares from 500 million to 50 billion. While this authorization does not guarantee immediate issuance, it effectively grants management near-unlimited authority to issue new shares.” – RI Research, Seeking Alpha analyst
There was also controversy at the recent shareholders' meeting. The newly appointed CEO and CFO did not attend, and the anticipated special speakers also did not show up. Additionally, a controversial investment of 200 million dollars into MrBeast's media business, which is unrelated to BitMine's core blockchain strategy, raised concerns about the management's focus and priorities in capital allocation.
It is still difficult to have confidence in the long-term strategic effects of BitMine. However, as the company captures a market share close to 5% of the total Ethereum supply, it is emerging as a significant variable affecting ETH price volatility. Investors should closely monitor this aspect along with the overall market situation.
