Bitmine acquires 40,000 Ethereum for $72M from FalconX and Kraken

Bitmine Immersion Technologies just scooped up another 40,000 ETH for approximately $71.6 million, sourcing the tokens from FalconX and Kraken. The purchase is the latest in a series of massive over-the-counter acquisitions by the firm, which trades under the ticker BMNR and is directed by investor Tom Lee. The company has been on an Ethereum shopping spree throughout 2026, executing individual transactions ranging from $35 million to $123 million as it methodically works toward a staggering goal: controlling 5% of all Ethereum in existence.

The Alchemy of 5%

Lee has named his strategy the “Alchemy of 5%.” As of early July 2026, Bitmine reported holdings exceeding 5.74 million ETH, representing approximately 4.8% of Ethereum’s total supply. In dollar terms, the company’s ETH treasury carries a valuation of around $10 billion.

This latest batch of roughly 40,000 ETH follows a separate purchase of approximately 42,197 ETH for around $74 million in late June 2026.

Staking as the revenue engine

About 85% of the company’s Ethereum holdings are staked through what it calls the Made-in-America Validator Network, or MAVAN. Rather than letting millions of ETH sit idle in a wallet, Bitmine locks it up to help validate transactions on the Ethereum network and earns rewards for doing so. The firm is projecting hundreds of millions in annual staking revenue from its holdings.

How Bitmine compares to the Bitcoin playbook

While Bitmine has been aggressively accumulating ETH, Strategy has reportedly opted to liquidate some of its Bitcoin holdings. Lee’s thesis rests on what he sees as Ethereum being fundamentally undervalued, pointing to long-term catalysts like tokenization and increasing demand from artificial intelligence applications. Lee has publicly characterized current market conditions as an early phase of growth, expressing confidence in ETH’s fundamental values despite short-term price fluctuations.

What this means for Ethereum investors

With 85% of Bitmine’s holdings locked in validators, the effective circulating supply of ETH is reduced further, meaning Bitmine is earning a disproportionate share of network rewards. BMNR stock performance has already benefited from the strategy amid broader market volatility.

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