The purchase may look tactical, but it fits into something much larger. Under the leadership of chairman Tom Lee, the firm is pursuing an unusually bold objective: accumulating 5% of Ethereum’s entire circulating supply. Internally, the initiative has been branded the “Alchemy of 5%,” signaling a long-term capital allocation thesis rather than a short-term trade.

From Miner to Ethereum Powerhouse

With the latest addition, Bitmine’s Ethereum reserves now stand at 4,371,497 ETH. At current valuations, that position – combined with cash and other digital assets – places the company’s treasury near $9.6 billion.

More importantly, the firm now controls about 3.62% of all circulating ETH. In practical terms, that transforms Bitmine from a passive holder into a structural participant in Ethereum’s economic layer.

Unlike many corporate treasuries that simply hold crypto exposure, Bitmine is actively deploying capital. Roughly 69% of its ETH – about 3.04 million coins – is staked. At prevailing network yields, that stake is estimated to generate around $176 million in annualized revenue, effectively turning Ethereum into a productive balance sheet asset rather than dormant inventory.

Building Its Own Validator Network

The strategy does not stop at staking through third parties. The company is preparing to roll out its own infrastructure, the Made-in-America Validator Network (MAVAN), scheduled for launch in the first quarter of 2026.

The move suggests Bitmine wants tighter operational control and potentially higher yields. Running proprietary validator infrastructure can reduce reliance on external providers while strengthening positioning within the Ethereum ecosystem.

Betting on Structural Tailwinds

Lee has described the current crypto environment as a temporary cooling phase – a “mini winter” – but not a breakdown in fundamentals. His thesis rests on three long-term shifts.

First, institutional players are accelerating tokenization initiatives, many of which are being built on Ethereum’s base layer and scaling networks.

Second, AI systems are increasingly interacting with blockchain rails for payments, verification, and automated coordination.

Third, digital identity and “proof of human” standards are expanding across Ethereum Layer 2 environments, reinforcing network usage beyond speculation.

Taken together, these trends form the backbone of Bitmine’s conviction that ETH’s long-term utility will outweigh interim volatility.

Closing In on 5%

With 3.62% of supply already secured, the company is more than halfway toward its 5% ambition. If achieved, that concentration would mark one of the most assertive corporate accumulation strategies in crypto markets to date.

While price cycles continue to test investor patience, Bitmine’s approach signals something different: a shift from opportunistic exposure to strategic ownership within Ethereum’s core economic infrastructure.

The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.

The post Bitmine Buys $91 Million Worth of Ethereum During Market Pullback appeared first on Coindoo.

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Filed under: Bitcoin - @ February 17, 2026 2:24 pm