BitMine has taken a bold step in its investment strategy by acquiring 21,537 ETH for approximately $60 million, as reported by Lookonchain on November 23. This acquisition comes despite the company experiencing a staggering 47% decline in its stock price and billions in unrealized losses.
This latest purchase elevates BitMine”s total Ethereum holdings to over 3.5 million ETH, which accounts for nearly 3% of the cryptocurrency”s total circulating supply. The move underscores the firm”s commitment to its “Strategic ETH Reserve” strategy, even as Ethereum”s price struggles. Currently, ETH is trading at around $2,808, reflecting a drop of roughly 29% over the past month.
Thomas Lee of BitMine has attributed the recent weakness in Ethereum”s price to broader market dynamics, rather than intrinsic issues with the asset itself. He pointed to a “liquidity shock” on October 10, which resulted in nearly $20 billion being wiped from the market due to leveraged positions, as a significant factor in the price decline.
The impact of these market conditions has been profound for BitMine, leading to an estimated $4 billion in paper losses from its Ethereum holdings. Consequently, the company”s stock has lost nearly half its value over the last month.
In response to the ongoing downturn, BitMine is transitioning from a passive holder of Ethereum to an active yield generator. On November 21, the firm announced the upcoming launch of its “Made in America Validator Network” (MAVAN), a proprietary staking infrastructure slated to commence operations in early 2026.
BitMine has also selected three pilot partners to initiate testing for its staking operations. By leveraging its substantial Ethereum stake, the company aims to generate significant annual revenue through network rewards, establishing a cash-flow foundation that traditional holding strategies do not provide.
Additionally, BitMine has declared an annual dividend of $0.01 per share, marking its position as the first large-cap crypto treasury to distribute capital directly to investors. This strategic move highlights the company”s efforts to adapt and provide returns to its shareholders amidst challenging market conditions.
