Whale swallows $12 billion worth of Ethereum, how does Bitmine earn $1 million daily through staking?

U.S.-listed company Bitmine Immersion Technologies is rapidly increasing its Ethereum holdings, with its latest position surpassing 4.07 million ETH, valued at approximately $12.09 billion, accounting for 3.36% of the total circulating supply of Ethereum. The company’s “5% Alchemy” strategic goal is clear: to control 5% of the global Ethereum supply by the end of 2026, and to conduct large-scale staking through its upcoming “U.S. Made Validator Network” MAVAN, with an expected annual yield exceeding $374 million. This aggressive move has left its peers in the strategic Ethereum reserve list far behind, not only reshaping the institutional ownership landscape of Ethereum but also sparking widespread discussions about network centralization and the rise of new crypto capital giants.

“5% Alchemy”: Bitmine’s Path to Ethereum Whale Status and Strategic Ambitions

In the crypto world, Strategy Inc. is known as the “listed company Bitcoin whale” due to its massive Bitcoin holdings. Now, another listed company, Bitmine Immersion Technologies, is attempting to replicate this position within the Ethereum ecosystem, with its bold strategy and swift execution turning heads. According to data on strategic Ethereum reserves, as of the end of December 2025, Bitmine’s Ethereum holdings have reached 4.07 million ETH, nearly 60% of the total reserves of the entire SΞR entity, making it 4.7 times larger than the second-largest holder, SharpLink Gaming. Led by Wall Street’s well-known bullish analyst Tom Lee and supported by billionaire Peter Thiel, the company has successfully transitioned from a Bitcoin mining firm to the world’s largest digital asset debt company focused on Ethereum.

Bitmine’s core strategy is called the “5% Alchemy,” which means the company aims to acquire and hold tokens equivalent to 5% of the total Ethereum supply, approximately 6.03 million ETH. To achieve this, Bitmine demonstrated extraordinary purchasing power by the end of 2025. Data shows that in December alone, the company made multiple large acquisitions: on December 5th, buying 138,500 ETH; on December 12th, 102,300 ETH; and on December 19th, 98,900 ETH. This continuous buying activity persisted even during the decline from Ethereum’s peak near $5,000 in August. Tom Lee attributed the price weakness at year-end to “selling pressure related to year-end tax-loss harvesting,” viewing it as a strategic window for accumulation.

The pace of accumulation is sufficient to support its ambitions. From zero to over 4 million ETH in about 5.5 months, Bitmine could potentially reach its 5% holding target later in 2026 if this speed is maintained. Currently, it still needs to acquire about 1.92 million ETH to reach the goal. Besides Ethereum, the company’s balance sheet also includes $1 billion in cash reserves, providing ample ammunition for future acquisitions. This strategy of deeply tying company assets to a single crypto asset is a high-risk, high-reward gamble, aiming to make Bitmine the most influential single entity shareholder within the Ethereum ecosystem.

Key holdings and staking data overview for Bitmine

Core holdings

• Ethereum holdings: 4.07M ETH
• Holding value: approximately $12.09 billion
• Market share: 3.36% of Ethereum’s circulating supply
• SΞR ranking: first among all strategic reserve entities, accounting for 59.8% of SΞR’s total reserves

Recent accumulation activity (December 2025)

• December 5: +138,500 ETH
• December 12: +102,300 ETH
• December 19: +98,900 ETH

Staking and yield targets

• Staked amount: over 461,504 ETH (worth about $1.37 billion)
• Staking plan: MAVAN (U.S. Made Validator Network)
• Target annualized yield: estimated to exceed $374 million (roughly $1 million daily)

From Holder to Ruler: MAVAN Staking Network and Governance Power Play

However, Bitmine’s ambitions go far beyond mere “holding.” The company’s ultimate goal is to shift from a passive asset hoarder to an active core participant and rule-maker in the Ethereum network. The key pivot in this strategic transformation is the planned launch of MAVAN—“U.S. Made Validator Network”—in 2026. Currently, Bitmine has delegated over 460,000 ETH to third-party staking providers, but this only represents a small fraction of its massive holdings. The launch of MAVAN signifies Bitmine’s intention to establish autonomous, large-scale infrastructure, directly staking its millions of ETH into the network validators, thereby deeply involving itself in Ethereum’s security and consensus processes.

The financial incentives are enormous. Tom Lee estimates that if all 4.11 million ETH are staked via MAVAN, the current standard suggests annual staking rewards could generate over $374 million, equivalent to a daily “passive income” of $1 million. This would significantly improve the company’s financial statements and provide a sustainable cash flow deeply tied to Ethereum network activity. For investors, Bitmine is transforming from a volatile “Ethereum beta investment tool” into a potential income-generating “infrastructure yield asset,” which will undoubtedly alter its valuation model.

A deeper impact lies in governance rights. Under proof-of-stake, a large staking share means significant influence over future Ethereum upgrades and governance proposals. By controlling a substantial portion of validators through MAVAN, Bitmine effectively gains potential influence over the network’s development direction. This has sparked longstanding concerns about “centralization” within the crypto community. Can a listed company driven by profit maximization, holding and controlling such a vast amount of network stake, be consistent with Ethereum’s original decentralization ethos? This will be a key issue for Bitmine and the broader Ethereum community to face in 2026. The upcoming annual shareholders’ meeting on January 15, 2026, which aims to authorize more shares and performance-based compensation plans, is a crucial step in raising capital and rallying shareholder support for this grand experiment.

Korean Retail Investors’ Frenzy: High-Leverage ETFs and the “Moth to the Flame” of “Ant” Investors

Bitmine’s story is not only about institutional capital but also a mirror reflecting the sentiment of retail investors worldwide, especially South Korean retail investors known for their preference for high-risk, high-volatility assets. Despite the stock price plummeting over 80% from its July 2025 peak, Korean retail investors have shown astonishing “bottom-fishing” enthusiasm. According to Korea Securities Depository data, in 2025, Bitmine became the second-largest foreign stock net buyer by Korean investors, with a net purchase of up to $1.4 billion, second only to Alphabet.

Korean retail investors, often called “ants,” are obsessed with Bitmine due to its extreme “convexity” appeal. The stock itself has been viewed as a leveraged investment tool on Ethereum’s price—its stock price fluctuations often multiply Ethereum’s own gains or losses. But that’s not enough. Investors seeking higher risk and return have also turned to the T-Rex 2X Long Bitmine Daily Target ETF, a leveraged ETF designed to double the daily gains of Bitmine’s stock. Since its launch, this ETF has attracted $566 million in inflows, despite its price retreating about 86% from its high. This “stock plus leverage ETF” combination creates a rare high-risk investment chain in the crypto space, reflecting Korea’s culture of chasing short-term explosive gains.

Behind this frenzy lies a significant risk mismatch. Ordinary retail investors may not fully understand that they are not investing directly in Ethereum itself but in a listed company employing aggressive financial strategies, with stock prices potentially deviating sharply from its net asset value. When the market turns, leverage amplifies losses, as we have already seen. Bitmine’s case has become an extreme market example in 2025: even after a price collapse, speculative demand based on narratives and future visions remains stubborn. This demonstrates both the enormous appeal of crypto assets among certain investor groups and the risks retail investors may bear far beyond their understanding in a market with insufficient education.

Deconstructing Bitmine’s Business Model: Opportunities, Risks, and Market Controversies

Bitmine’s rise signifies a new model of crypto capital operation: leveraging a listed company platform to issue shares for raising traditional fiat funds, systematically acquiring and holding cryptocurrencies, and ultimately “producing” assets through staking, lending, and other on-chain financial activities to generate profits and return value to shareholders. The success of this model depends on several key variables.

The core opportunity lies in providing traditional market investors with a compliant, convenient channel to gain indirect exposure to Ethereum’s growth through equity, and potentially share in its network-generated revenues. If Ethereum’s price remains long-term bullish and network activity stays vibrant, the value of Bitmine’s holdings and staking income will grow in tandem, creating a “Davis double play.” Its large holdings also act as a market force, potentially supporting Ethereum’s price through continuous buying, forming a self-reinforcing cycle.

However, significant risks also exist. First, this is a high-leverage bet on a single asset. The company’s fate is almost entirely tied to Ethereum’s price; any major technical failure, regulatory crackdown, or market confidence crisis could cause its assets to sharply decline. Second, there is a notable risk of net asset value discount. Currently, Bitmine’s stock market value is trading at a discount relative to its Ethereum asset net worth, reflecting market doubts about its business model and management. If this discount persists or widens, it will harm shareholder interests and the company’s ability to raise further capital. Lastly, regulatory and centralization risks are also prominent. Concentrating such a large amount of assets in a single entity may attract additional scrutiny from global regulators.

Market opinions are highly divided. Optimists like Tom Lee believe the crypto market is in a “super cycle,” predicting Ethereum could reach $25,000 by 2028. Pessimists criticize this as an “ancient financial scam”: borrowing to invest in highly volatile assets. Wolfgang Münchau, co-founder of the European think tank Eurointelligence, sharply pointed out that setting up a business to buy Bitcoin or Ethereum and hoping its price never falls below some “imaginary support level” is “utterly foolish.” Only time will tell which view prevails.

Outlook for 2026: Will Ethereum’s Ecosystem Change Because of Bitmine?

With Bitmine progressing toward its 5% target and the MAVAN network launching, the Ethereum ecosystem in 2026 may undergo subtle yet profound changes driven by this company.

First, the concentration of institutional holdings will increase. Data from the strategic Ethereum reserves show that all 68 entities hold a total of 6.81 million ETH, representing 5.63% of supply. Bitmine alone accounts for a large part of this. This trend could prompt other institutions or countries to increase their Ethereum allocations as strategic reserves, balancing Bitmine’s influence and possibly sparking discussions about liquidity tightening.

Second, the evolution of staking power structure. Once MAVAN is fully operational, Bitmine could become one of the largest Ethereum staking entities globally. This would alter the distribution of validator nodes, prompting other major holders (such as Lido DAO, Coinbase, etc.) to reassess their staking strategies, and possibly accelerate the development of decentralized staking solutions to counteract the growing centralization trend.

Third, can the “crypto debt” model withstand economic cycles? In 2025, many listed companies transformed into crypto holding platforms experienced rollercoaster stock price swings. In 2026, with potential changes in Federal Reserve monetary policy and macroeconomic fluctuations, these companies will face real stress tests. Whether they can prove they are not just leverage tools in a bull market but sustainable businesses capable of surviving cycles and generating stable cash flows will be key to their long-term valuation.

In summary, Bitmine’s story is more than just an investment gamble of a single company. It reflects the unprecedented scale and depth of traditional capital’s involvement in crypto networks; it is an experiment testing the boundaries of coexistence between decentralized finance and centralized capital giants; and it signals that the economic and governance models of mature blockchains like Ethereum are quietly evolving from “community-led” to a new phase of “capital and community co-governance.” For every market participant, paying close attention to Bitmine’s every move in 2026 may be a window into the future power and wealth flows in the crypto world.