2026-1-27 14:17 |
While Ethereum (ETH) has fallen below $3,000, dropping even under its opening price at the start of 2026, ETH staking activity has reached a record high. Among the most aggressive participants is BitMine, a NYSE-listed company (BMNR) led by CEO Tom Lee.
This development raises a critical question: Can BitMine become a major catalyst for ETH, or does it represent a significant risk, especially as fear-driven market sentiment returns?
BitMine Steps up Ethereum Accumulation and Staking in JanuaryBitMine recently announced that it purchased more than 40,000 ETH in the past week. According to CoinGecko data, the company now holds over 4.2 million ETH, valued at more than $12.4 billion. This amount represents over 3.5% of Ethereum’s total supply.
This move aligns with BitMine’s long-stated goal of controlling 5% of Ethereum’s total supply.
BitMine Ethereum Holdings Charts. Source: CoinGeckoThe chart shows steady buying from mid-last year to now, with no clear signs of slowing.
CEO Tom Lee has expressed strong confidence in Ethereum’s future after listening to discussions among global leaders and policymakers at Davos.
“In 2016, the story of Davos was AI and the fourth industrial revolution. Over the following decade, AI and data centers expanded massively, and nations pivoted their strategies. A decade later, 2026 marks the year when policymakers and world leaders view digital assets as central to the future financial system. As Larry Fink has noted, this is positive for smart blockchains. Ethereum remains the most widely used blockchain on Wall Street and the most reliable, with zero downtime since inception,” Lee stated.
In addition, Lookonchain reported that Tom Lee, through BitMine, staked an additional 209,504 ETH—worth approximately $610 million—in a single day. BitMine’s total staked ETH now stands at 2,218,771 ETH, valued at around $6.52 billion. This accounts for more than 52% of the company’s total ETH holdings.
Meanwhile, Validator Queue data shows that the ETH entry queue for validator participation has reached a record high, exceeding 3.3 million ETH.
Ethereum Validator Queue. Source: ValidatorQueueA previous BeInCrypto report indicated that total staked ETH has surpassed 36 million, representing 30% of the total supply. When ETH is currently included in the entry queue, this figure could soon approach 40 million ETH.
What do Analysts Predict About BitMine’s Impact on ETH Price?Analyst Milk Road notes that a single entity, BitMine, controls roughly 3.52% of Ethereum’s circulating supply. BitMine’s strategy goes beyond simple “buy and hold.” The company focuses on large-scale accumulation combined with yield generation through staking. This scale of buying creates sustained demand, helping keep ETH within an upward price channel.
ETH Upward Price Channel. Source: Milk Road“It’s exactly this kind of institutional accumulation that keeps $ETH in its ascending channel. More importantly, it helps pull the price back into that channel when macro shocks temporarily push it out,” Milk Road explained.
On-chain data supports this view. As spot market ETH supply declines due to increased accumulation and staking, price support strengthens.
However, analysts also warn about significant risks from excessive concentration. BitMine began purchasing ETH in July 2025, yet ETH has since dropped by more than 40% from its August peak.
According to BitMine’s disclosures, the average cost of its ETH holdings is $2,839 per ETH. With ETH trading near $2,900, the company has a slim profit margin and could quickly fall into losses if the downtrend continues.
Analysts at Seeking Alpha argue that overexposure to ETH creates extreme risk, especially when combined with potential share dilution.
“Management is pushing shareholders to approve a charter amendment that increases authorized shares from 500 million to 50 billion. While authorization does not guarantee immediate issuance, it effectively gives management a green light to issue new shares in nearly unlimited volumes,” analyst RI Research from Seeking Alpha said.
Recent shareholder meetings have also drawn controversy. The newly appointed CEO and CFO did not attend, and the promised guest speakers failed to appear. In addition, a controversial $200 million investment in MrBeast’s media venture—unrelated to BitMine’s core blockchain strategy—has raised concerns about management’s focus and capital-allocation priorities.
The long-term effectiveness of BitMine’s strategy remains uncertain. However, as its share of Ethereum’s total supply approaches 5%, the company is becoming a key variable in ETH price dynamics—one that investors should monitor closely alongside broader market conditions.
The post BitMine Accelerates Ethereum Accumulation and Staking: A Major Catalyst or a Major Risk for ETH? appeared first on BeInCrypto.
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