Ethereum Foundation ETH Sales Hit $47M in a Week

Ether ETH sales hit an all-time high of $47million in a single week due to increased BitMine purchases of Ether in OTC trades.
BitMine increases staking to 83% of its holdings as its total ETH reserves.
ETH price is steady around $2300 amid off-market purchases and accumulation operations.

The Ethereum Foundation has made its third over-the-counter purchase of ether from BitMine Immersion Technologies, marking the latest in a string of ether sales related to the foundation’s fundraising model.

In the latest deal, the Foundation sold 10,000 ETH at an average price of $2,292.15, bringing the total value to approximately $22.9 million. This transaction follows two earlier sales within a short period, pushing the total value of Ethereum Foundation ETH sales to about $47 million over the past week.

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The use of over-the-counter transactions allows the Foundation to execute large transfers privately, without placing immediate pressure on public exchange liquidity.

What the Transactions Show

The Ethereum Foundation’s ETH sales have followed a consistent structure in recent weeks. One week prior to the latest transaction, the Foundation sold another 10,000 ETH at a higher average price of $2,387 per coin. Before that, in March, it completed an initial deal with BitMine involving 5,000 ETH at around $2,043 per coin.

Each of these transactions was carried out privately and at varying prices based on the changing dynamics during each period.

Source: Ethereum Foundation

However, the latest transaction was between $2,292.15, which is between the other two transactions, thus demonstrating that the value of ETH is shifting gradually. All three sales were executed through OTC agreements, meaning pricing and volume were negotiated directly between the two parties rather than through open-market trading.

BitMine Expands Holdings and Staking

While the ETH sales have reduced the Foundation’s liquid holdings, BitMine has continued to build its position. The firm has accumulated close to 5 million ETH, following a weekly purchase of 101,901 ETH, its largest acquisition this year.

At the same time, BitMine has increased its staking activity. Data from Lookonchain shows that the company staked an additional 162,088 ETH as of Thursday.

The firm increased the amount staked to 4,194,029 ETH worth $9.5 billion. The $9.5 billion figure accounted for about 83% of total ETH holdings, up from 70% the previous week.

Ethereum Price Maintains Consistency Amidst ETH Sales

The ETH sales by the Ethereum Foundation occurred amid consistent market movements. According to CoinGecko, ETH rose by more than 2%, reaching about $2,309.80. However, according to CoinMarketCap, the cryptoasset traded at around $2,303.

Despite maintaining its consistency, Ethereum has been performing poorly compared to its historic prices. Ethereum has lost more than 53% from its all-time high price of $4,953 posted in August last year.

Since the transaction took place privately, it didn’t affect exchange-based price movements. Rather, the agreed prices would be based on market prices at the time of transactions.

Asset Strategy of the Ethereum Foundation

These ETH transactions by the Ethereum Foundation take place amid changes in how the entity manages its resources. Apart from selling ETH, the entity has embarked on staking some of its resources and investing others in decentralized finance protocols.

These measures will aim to create additional sources of income beyond direct asset sales. The Foundation had already signaled it would restrict ETH liquidation, and the shift toward staking and DeFi demonstrates an attempt to balance its funding requirements with its long-term asset management.

Other Ethereum treasury participants, like SharpLink, have also been involved with the Foundation in similar deals, demonstrating a trend of institutional-scale ETH transfers within the ecosystem.

Community reactions to ETH Sales.

Some responses to the announcements have questioned the frequency of the transactions and the amount of capital raised within a short period.

This is not the first time the Foundation’s sales have been discussed publicly. Previous ETH liquidations have also prompted similar reactions, particularly when large volumes were moved over limited timeframes.

Community reactions Source: Danijel

At the same time, the Foundation stated that the proceeds are used for operational purposes, including development work and ecosystem support.

Conclusion

The recent Ethereum Foundation ETH sales are a continuity of organized OTC transactions to finance operations. The Foundation sells a portion of its stakes to capital, while BitMine continues to pile up and stake an ever-increasing portion of Ethereum.