Bitmine has acquired 26,497 ETH, the company announced Thursday, as part of a strategy to accumulate 5% of Ethereum's total supply by 2026. The purchase comes as the second-largest cryptocurrency trades near $2,000, recovering from a nearly 60% decline from its all-time high.
Chairman Tom Lee said the firm would reach its 5% target "sometime in 2026," signaling a measured accumulation approach rather than a rush to buy. The acquisition represents a significant institutional bet on Ethereum's long-term value, though it remains a small fraction of the roughly 120 million ETH in circulation.
The move aligns with a broader resurgence in crypto markets, where some analysts are optimistic about ETH reaching $5,000. However, no specific timeline or price target from Bitmine was disclosed, and the $5,000 figure appears in speculative commentary rather than official forecasts.
Ethereum's market cap currently hovers around $240 billion, representing roughly 18% of the total crypto market — a dominance level that has remained relatively stable. The token's correlation with Bitcoin remains high, meaning macro factors affecting BTC will likely influence ETH's trajectory.
The strategy carries risks: large-scale accumulation by a single entity could create market distortion, and the slow pace implies the firm expects volatility. Competitors hold far smaller positions, and if broader crypto adoption stalls, Bitmine's 5% target may prove optimistic.