BitMine ramps up Ethereum staking to $5.6B as token reserves on exchanges thin

BitMine Immersion Technologies, the leading Ethereum Treasury company in the world, has recently staked about 86,848 tokens, rapidly expanding its ETH stockpile to approximately 1.77 million ETH—roughly $5.66 billion at current prices.

This move demonstrated a growing trend in which institutional investors, public firms, and treasury companies like BitMine are allocating a significant portion of their funds to staking to push their long-term Ethereum holdings.

Meanwhile, as this trend persists, analysts have conducted research and found a significant shortage of ETH supply on crypto exchanges. 

However, hope for a more positive future for Ethereum has been sparked by the reduction in the number of Ethereum available on crypto exchanges, and by BitMine’s long-standing effort to make significant staking of the cryptocurrency.

BitMine makes a big move in the crypto ecosystem 

Regarding BitMine’s recent move, the on-chain analytics platform Lookonchain initially disclosed the leading Ethereum Treasury company’s staking activities on the social media platform X. 

According to reports from Lookonchain, these staking activities took place five hours ago, on January 20. With fewer ETH tokens on the market, analysts see potential upward price pressure if demand holds or increases.

Interestingly, even with significant staking, BitMine’s industry executive asserted that they will continue to promote further accumulation of Ethereum in their holdings despite rising market instability. To illustrate their commitment to achieving this goal, sources highlighted that the firm acquired around 24,000 Ethereum, expanding its total ETH holdings to 4.17 million. 

This approach drew the attention of several investors. BitMine’s CEO, Tom Lee, weighed in on the matter. He noted that, “We continue to be the largest ‘fresh money’ buyer of ETH worldwide. And when MAVAN starts its commercial operations, we will become the biggest staking provider in the entire crypto ecosystem.” 

Lee also pointed out that he adopted the Ethereum staking program for BitMine as a critical step to help the firm address its $4 billion debt. While pursuing this aim, Ether traded below $3,000, resulting in $4 billion in losses.

Nonetheless, even with this temporary downturn, Lee expressed optimism about the long-term potential of cryptocurrency and stated that the company will begin staking to generate additional income.

Crypto firms demonstrate heightened interest in purchasing the largest altcoin

BitMine’s staking move has played a crucial role in boosting the firm’s overall Ethereum staking. To remain competitive in the industry, key players have decided to follow the Ethereum treasury company’s lead by retaining their tokens for the long haul. As this trend persists, reports indicate that Ethereum staking has soared to a record $118 billion. 

Apart from staking, analysts also discovered that significant institutions such as BitMine have shown heightened interest in purchasing the largest altcoin. Other firms that have played a part in this move include Sharplink, The Ether Machine, and ETHZilla. These companies have gone so far as to create their own Ether reserves.

Regarding the supply shortage, sources explained that the surge in corporate Ether purchases is the root cause of the sharp decline in the token’s supply on cryptocurrency exchanges. Currently, only about 16.3 million Ether are available on centralized exchanges (CEXs), according to CryptoQuant.

On the other hand, analysts anticipated that such a scenario could lead to price increases in ETH as demand for the cryptocurrency escalates. 

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