Bitmine Immersion, the largest Ethereum treasury company, is now reassessing its approach, making its first ETH staking move. In an attempt to generate significant yield on its massive Ether holdings, the company has reportedly deposited 74,880 ETH into the Ethereum Proof-of-Stake (PoS) system.
Significantly, this strategic move comes on the heels of recent reports that revealed unrealized losses in Bitmine’s Ethereum holdings. By embracing ETH staking, Bitmine reiterates its confidence in the long-term potential of the altcoin, while highlighting the significance of revenue diversification.
Unveiling Bitmine’s Ethereum Staking Play
According to the latest findings from EmberCN, Bitmine has shifted its focus to Ether staking to earn income from its 4 million ETH holdings. The company has moved 74,880 ETH, worth $219 million, to the Ethereum PoS system, marking its first staking initiative.
The largest Ethereum treasury company’s diversified approach to the cryptocurrency indicates its interest in ETH on a long-term basis. With an APY of about 3.2%, Bitmine could earn around a staggering 126,800 ETH in interest annually. At the current price of $2.9k per ETH, the staking could return $371 million in ETH on a yearly basis.
In addition, Bitmine’s ETH staking could also significantly contribute to the security and stability of the Ethereum network. It also aligns with the company’s goal of accumulating 5% of the altcoin’s circulating supply.
Previously, in November, Bitmine revealed ETH staking plans, as the company saw itself under pressure amid nearly $4 billion in unrealized losses. The firm announced the launch of the Made in America Validator Network (MAVAN) to support its staking initiative. CEO Tom Lee stated,
“We plan to partner with one or more of these pilot partners plus world-class infrastructure providers to scale our own “Made in America Validator Network” (MAVAN) over the coming quarter.”
Despite this move, the Bitmine stock price (BMNR) has declined to $28.10, down by 0.74% in a day. Over the past month, the shares have fallen by a more notable 10%, with the stock plummeting marginally by 0.42% in the last five days.
Bold Ethereum Staking to Offset Losses
Notably, Bitmine’s ETH staking could be seen as a strategic move to counter its unrealized losses in Ethereum holdings as the token price hovers below the critical $3k range. While Bitmine continues to acquire ETH despite its bearish trend, the company has reportedly seen $3.5 billion-$4.2 billion in unrealized losses in its 4.06 million Ether holdings, worth $11.9 billion.
While other major Ethereum treasury companies like SharpLink and ETHZilla were forced to dump their holdings, Bitmine accumulated more tokens. Recently, as CoinGape reported, Bitmine bought ETH valued at a huge $199.4 million in a span of a single day.
This indicates the company’s commitment to its Ether accumulation strategy. As the platform is nearing its 5% target, now holding 3.4% of ETH’s total supply, CEO Tom Lee sees it as a “tremendous milestone.”
Largest Ethereum Treasury Company Bitmine Enters Staking, Deposits 74,880 ETH
