BitMine’s Ethereum Holdings Top 2% of Supply With $365M Raise for More Purchases

BitMine Ethereum holdings have surged past 2% of the total ETH supply, cementing the company’s position as one of the largest institutional holders in the market. Alongside this milestone, BitMine revealed a $365 million capital raise at a 14% premium, with all proceeds earmarked for additional Ethereum purchases. This aggressive accumulation is fueling speculation about ETH’s long-term supply dynamics and market outlook.

BitMine’s Ethereum Stash: A Whale-Sized Bet

With 2.4 million ETH in reserve, BitMine now controls more Ethereum than many major exchanges and asset managers. For context, Ethereum’s circulating supply sits near 120 million ETH, making BitMine’s stake a significant piece of the pie.

This move comes at a time when institutional interest in Ethereum is expanding, particularly after the approval of spot ETH ETFs earlier in 2024. The firm’s continued accumulation signals strong conviction in ETH as both a store of value and a yield-bearing asset within the DeFi ecosystem.

$365 Million Raise at a Premium: Why It Matters

BitMine’s financing round was priced at a 14% premium to net asset value (NAV), showing that investors are willing to pay above market rates to gain indirect exposure to Ethereum.

This echoes the pattern seen with Bitcoin-focused companies like MicroStrategy, which have historically issued equity to fund BTC purchases. Analysts suggest that this latest raise could mark the beginning of a corporate Ethereum accumulation trend, further tightening supply.

Institutional Momentum Behind Ethereum

Ethereum has become the go-to blockchain for smart contracts, DeFi, and tokenization of real-world assets (RWAs). With ETH ETFs holding over 6.4 million ETH already and firms like BitMine adding aggressively, institutional exposure continues to rise.

According to CoinShares, Ethereum products saw $40M in weekly inflows recently, highlighting a shift toward ETH as a core holding alongside Bitcoin. If this pace continues, Ethereum’s float could shrink, creating upward price pressure.

The Supply Squeeze Narrative

Ethereum’s supply dynamics have shifted dramatically since the Merge in 2022, which introduced a proof-of-stake system that burns base fees. As a result, ETH has frequently turned deflationary, with more tokens burned than issued.

BitMine’s growing holdings further tighten available supply:

• 2.4M ETH locked by BitMine
• 6.4M ETH held by ETFs
• Over 27M ETH staked in Ethereum’s proof-of-stake network

Combined, these figures suggest that nearly 30% of all ETH is locked away long-term. That leaves less liquidity for traders, increasing the potential for sharp upside moves when demand spikes.

Market Implications: Can ETH Break Higher?

ETH is currently consolidating around the $4,600 level, but traders are watching for a breakout toward $5,000—a target that has been hinted at by derivatives market activity.

BitMine’s aggressive purchase plans could serve as a psychological catalyst, encouraging retail and institutional investors to follow suit. However, analysts also warn that over-concentration of supply in corporate treasuries could heighten volatility if liquidation risks emerge.

Key Takeaways

• BitMine Ethereum holdings now exceed 2.4M ETH, representing over 2% of supply.
• A $365M capital raise at a 14% premium will fuel additional ETH purchases.
• Combined with ETFs and staking, nearly 30% of ETH supply is locked long-term.
• Institutional demand is strengthening Ethereum’s position as both a reserve asset and a DeFi backbone.

Final Thoughts

BitMine’s milestone confirms that Ethereum is not just a smart contract platform—it’s fast becoming an institutional-grade asset. With supply tightening and capital inflows accelerating, the next phase of ETH’s market cycle could see explosive growth, especially if prices break through the psychological $5,000 barrier.