BitMine’s Ethereum Buying Nears Strategy’s Pace as Weekly Purchases Hit $200 Million to $300 Million

Corporate demand for Ethereum is accelerating, fueling expectations that the token could develop a supply-demand structure more akin to Bitcoin’s.

CoinDesk reported on April 28 that BitMine Immersion Technologies, the largest corporate holder of Ethereum, has recently been buying about $200 million to $300 million of the token each week. That is nearing the pace typically associated with Bitcoin accumulation company Strategy.

BitMine bought about $234 million of Ethereum last week, its biggest weekly purchase this year. The increase was not a one-off event: the company’s weekly buying pace has steadily expanded from about $76 million at the start of the year.

BitMine now holds more than 5 million ETH, or about 4.21% of circulating supply. About 73% of those holdings are staked, generating an estimated $264 million in annual income.

Market participants are focusing on BitMine’s role as a standing buyer that keeps accumulating Ethereum regardless of price. Unlike many companies that cut purchases during price declines, BitMine has increased the pace of its buying.

The company had previously recorded about $8 billion in unrealized losses against roughly $16 billion of purchases, raising concerns about the strain of that strategy. Even so, it continued buying, and Ethereum’s roughly 22% rebound from its February low has partly eased those losses.

Industry participants say that if the trend continues, Ethereum could also develop a corporate demand base similar to Bitcoin’s. A market structure in which supply is absorbed regardless of price could influence longer-term supply-demand stability.