Bitmine Accelerates Ethereum Purchases To Close Out August
The serial cryptocurrency acquirer led by Chairman Tom Lee bought 53,501 Ethereum over the past week at a cost of $131.3 million U.S.
It was Bitmine's largest weekly purchase of Ethereum since June of this year. The company now owns 5,901,112 ETH valued at $14.50 billion U.S. based on the crypto's current price.
The accelerated purchases mark a shift from earlier this summer when Bitmine slowed its accumulation as it approached its self-imposed goal of owning 5% of Ethereum's supply.
Bitmine's weekly purchases fell below 10,000 ETH several times in July and August.
The company said it now owns 4.9% of Ethereum's 120.7 million circulating supply. Bitmine is currently 134,000 ETH tokens short of its 5% goal.
The latest buying comes with Ethereum's price having risen 55% in August, outperforming U.S. stocks for the first time in months.
Bitmine has staked 5.07 million Ethereum, equal to 86% of its holdings. It expects to earn $335 million U.S. in annualized staking revenue moving forward.
Staking is the process of locking up digital assets on a blockchain network to help verify transactions and secure the network in exchange for earning rewards such as cash or crypto.
Analysts liken staking to earning interest on a bank savings account.
Ethereum is trading at $2,450 U.S. on Aug. 31. BMNR stock has declined 44% over the past 12 months to trade at $23.80 U.S. per share.
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