Bitmine Stakes $1B in Ethereum, Raising Supply Shock Concerns

BitMine Immersion Technologies, chaired by Tom Lee, has staked approximately $1 billion worth of Ethereum, depositing 342,560 ETH within 48 hours. This move raises concerns about a potential ETH supply shock due to increased institutional accumulation.

The Ethereum validator entry queue has nearly doubled the size of the exit queue for the first time in six months.
New validators face an estimated waiting period of over 12 days, with 735,000 ETH pending activation.
The exit queue holds approximately 344,000 ETH with a wait time of around six days.

Bitmine's total holdings now exceed 4.1 million ETH, which is 3.41% of Ethereum's circulating supply. The company's goal, "Alchemy of 5%," aims to acquire 5% of all ETH.

Bitmine works with three staking providers and plans to launch its commercial MAVAN (Made in America Validator Network) in 2026.
As of December 28, 2025, Bitmine's total staked ETH is 408,627, valued at $1.2 billion.

ETH is currently trading near $2,931, up 0.63% in the last 24 hours, with Bitmine’s total crypto and cash reserves valued at $13.2 billion.

Strategic Implications

Bitmine's massive ETH stake suggests a strategy focused on long-term yield rather than speculation.
This action removes significant liquid ETH from exchanges, potentially causing a supply squeeze.
The development of Bitmine's MAVAN indicates a long-term commitment, pressuring other institutions to enhance their staking strategies.