Bitmine Purchases Another 25,000 ETH, Accumulating $205M in Buys Over Three Days
0xBroomberg
Bitmine spent another $41 million on Wednesday to scoop up 25,000 ether, pushing its three-day buying spree to $205 million — even as unrealized losses on its holdings near $9.9 billion. The company is trading paper losses for tokens, betting the market has Ethereum's price badly wrong.
How much did it spend in three days?
Bitmine moved roughly $41 million from custodian BitGo's hot wallet on Wednesday and bought 25,000 ETH.
On-chain tracker Lookonchain shows cumulative purchases of 125,000 ETH over three days — about $205 million at current prices.
This means → the company is deploying nearly $70 million a day. This is not dollar-cost averaging — it is concentrated accumulation.
How large is the total position now?
As of Monday's disclosure, Bitmine holds 5,543,872 ETH — 4.59% of Ethereum's circulating supply (roughly 120.7 million tokens).
The company's stated target is 5% of circulating supply; it is now 92% of the way there.
In plain terms = for every 20 ether circulating in the market, nearly one sits in this company's treasury.
The position is deep underwater — why keep buying?
Ethereum has fallen more than 44% this year to $1,642.70. DropsTab data puts Bitmine's unrealized loss at roughly $9.9 billion.
Chairman Tom Lee's logic: the deeper the drop, the cheaper the tokens. The company believes current prices do not reflect Ethereum's fundamentals.
This means → Bitmine treats market panic as a discount window. The strategy is contrarian accumulation with a long-term horizon.
Where is the money coming from?
Bitmine filed this month to issue 3 million Series A perpetual preferred shares at $100 par value with a 9.5% annual dividend, to list on the NYSE under the ticker BMNP.
In plain terms = the company promises investors 9.5% a year in exchange for cash to buy more ether — a structure similar to Strategy's STRC product.
Bitmine's common stock (ticker BBMNR) closed down 3.46% at $15.64 on Wednesday — the market is not enthusiastic about "borrow money to buy crypto."
Can this strategy survive?
The core tension: unrealized losses of $9.9 billion and the company is still accelerating purchases. Sustainability depends on whether capital markets keep funding the bet.
If Ethereum keeps falling, losses widen → preferred-share issuance gets harder → the buying pace slows — a negative feedback loop.
This reflects a deeper question: corporate "treasury stacking" strategies are, at their core, leveraging equity dilution and debt to bet on one asset's long-term direction. If the bet is right, it looks like vision. If it is wrong, it is a catastrophe.
Content is for reference only, not financial advice.