Key Insights
- The Bitmine ETH staking begins by depositing 74,880 ETH via institutional validator infrastructure.
- The company holds more than 4 million ETH and proposes staking to offset unrealized losses on its balance sheet.
- Ethereum ETF outflows persist as ETH price consolidates below major technical points.
Bitmine ETH Staking Marks a significant change in Ethereum Treasury Strategy
Bitmine ETH staking has formally begun after the Ethereum treasury firm deposited nearly $219 million worth of Ether into Ethereum’s proof-of-stake system, according to on-chain data.
The move represents Bitmine’s first confirmed participation in staking activity, signaling a shift in how one of the largest corporate Ether holders manages its digital asset reserves amid sustained market pressure on Ethereum prices.
Moreover, multiple wallets linked to Bitmine transferred a combined 74,880 ETH to a smart contract labeled “BatchDeposit,” according to data from Arkham.
Bitmine ETH Staking and Treasury Scale
According to on-chain analyst EmberCN, the deposits represent Bitmine’s first attempt to generate yield from its Ethereum holdings. At present, Bitmine controls approximately 4.066 million ETH.
Moreover, based on an estimated annual percentage yield of about 3.12%, EmberCN calculated that full staking of the company’s holdings could generate roughly 126,800 ETH annually.
At a spot price near $2,927, this would translate to approximately $371 million in yearly staking rewards, though no confirmation has been made that all Ether will be staked.
Staking Move Follows Unrealized Losses
The launch of Bitmine ETH staking follows disclosures that the firm is carrying substantial unrealized losses on its Ether position. With ETH trading below the $3,000 level, Bitmine’s 4.06 million ETH holdings, valued at roughly $11.9 billion, have been associated with paper losses estimated between $3.5 billion and $4.2 billion.
The decision to stake introduces a yield component that offsets part of the downside from price weakness without requiring asset sales.
Previous reporting indicated that other Ethereum-focused treasury firms reduced exposure during recent market stress. By contrast, Bitmine continued accumulating ETH.
As previously reported, the firm purchased approximately $199.4 million worth of Ether in a single day, adding to its already dominant position.
Treasury Size and Concentration Highlight Exposure
Building on this sentiment, on a value-weighted basis, Ether accounts for about 99.86% of the treasury. At this scale, every $1,000 move in the price of ETH translates to a change of roughly $4.07 billion in the paper value of Bitmine’s holdings.
This concentration explains why commentary around large Ethereum price targets has drawn attention from figures associated with the firm.
Additionally, Bitmain’s Chairman Tom Lee recently reacted to a viral image circulating on social media that referenced aggressive 2026 price targets for Bitcoin, Ethereum, and Solana.
The image, later flagged by a community note as originating from a non-verifiable forum post, gained traction after Lee quote-posted it with a brief endorsement. Bitmine issued no formal price guidance in connection with the post.
Network Effect and Ethereum Network Impact
Bitmine ETH staking is occurring alongside other large Ethereum treasury holders, who are still laying out expectations for institutional expansion on the network.
The second-largest holder of Ethereum treasuries among public entities is Sharp link Gaming, with approximately 798,000 ETH, worth nearly $2.33 billion.
Additionally, Bitmine’s holdings now represent roughly 3.4% of Ethereum’s total circulating supply, approaching a stated internal target of 5%.
In November, Bitmine disclosed plans to launch its own validator infrastructure under the Made in America Validator Network (MAVAN). The company, at the time, asserted that it had to commit to long-term Ethereum involvement despite increasing unrealized losses.
Moreover, the recent Batch Deposit operations indicate that the plans are currently being implemented.
TVL Expectations and Peer Holdings
Adding to the report, Bitmine is not the sole publicly traded company holding a huge Ethereum treasury. Sharplink Gaming is the second-largest publicly disclosed Ethereum holder, holding approximately 798,000 ETH, valued at around $2.33 billion.
The co-CEO of Sharplink, Joseph Chalom, has stated that the total value locked in Ethereum is expected to grow exponentially in 2026, driven by increased institutional trading and the development of more on-chain applications.
According to Chalom, one of the primary contributors to the network’s expansion was stablecoins. He estimated that the stablecoin market would grow to $500 billion by the end of next year, representing a 62% increase from its current state.
Nonetheless, more than half of stablecoin transaction activity currently occurs on Ethereum, linking issuance growth directly to Ethereum’s on-chain metrics.
ETF Flows and Market Conditions are Still Pressured
As of press time, the price of ETH was around $2,930, and the price action is currently in a consolidation stage, trading below key moving averages after a sharp breakdown in November.
However, since December 11, Ethereum spot ETFs have recorded approximately $853.9 million in net outflows, according to Farside Investors.
Only one trading session interrupted the trend, with a $84.6 million inflow on December 22. Outflows resumed shortly thereafter.
Additionally, data from December 27 shows an additional $16.6 million exiting Grayscale’s ETHE fund.
