Tom Lee’s Bitmine endures slide as firm hits 96% of ‘Alchemy of 5%’ target
- Bitmine Immersion Technologies now holds 5.77 million Ether, 4.8% of the total supply.
- BMNR is trading near 52-week lows and below the value of its own Ether.
- Bitmine’s slowing purchases and the 9.5% dividend on its new preferred stock now depend on staking income that Ether, unlike Bitcoin, can produce.
Tom Lee’s Bitmine Immersion Technologies (NYSE: BMNR) now controls 5.77 million Ether, which is about 4.8% of all Ether in circulation. The company is now 96% closer to its goal of owning 5% of all the ETH tokens in circulation.
Despite these optimistic figures, the company’s stock BMNR is trading near the bottom of its 52-week range.
Why is Bitmine’s stock price falling?
Bitmine Immersion Technologies has announced that it now controls 4.8% of Ethereum’s 120.7 million token supply (about 5.77 million Ether). Bitmine added 27,801 ETH over the prior week and pegged its total crypto, cash, and other holdings at $11.3 billion, with Ether marked at $1,820 per token.
However, BMNR traded at $14.49 on the NYSE on July 13, below its previous close of $14.96. Over the past year, the stock has traded between $12.80 and $71.74. The company’s market value of about $7.8 billion is now less than the value of the Ether it holds on its balance sheet. Back on June 1, Cryptopolitan reported the shares down 38% year to date while Ether slipped below $2,000.
The company’s average Ether cost is about $3,997 per token. With Ether trading around $1,820, Bitmine is sitting on an unrealized loss of about $9 billion.
The company is working towards its goal of owning 5% of all Ether in circulation, and so despite its losses, Bitmine keeps ETH— but it’s buying less each week. The 27,801 ETH added this week is down from 42,197 the week before.
The company’s balance sheet now carries new financial obligations like the Series A Perpetual Preferred stock (NYSE: BMNP). In June, Bitmine set out to raise up to $300 million through the offering, but ended up raising about $273.8 million from selling this preferred stock.
The preferred shares pay a 9.5% yearly dividend in weekly cash payments, meaning that Bitmine must pay out cash every week, no matter what the price of Ethereum is.
Can staking income cover Bitmine’s dividend payments?
Unlike Bitcoin, which generates no income, Ether can be staked to earn rewards. Bitmine has staked about 4.92 million ETH, which is about 85% of its position, and is worth close to $9 billion with ETH at a price of $1,820. Those validators run a 2.7% seven-day annualized yield.
Tom Lee, the company’s founder, projected staking revenue of about $242 million a year, climbing toward $284 million once the full position is deployed across MAVAN, the company’s validator network, and its staking partners.
Bitmine’s projected staking revenue exceeds the annual cost of the BMNP dividend payments.
Lee stated that the July 1 launch of Robinhood Chain, a new network that uses ETH to pay transaction fees, is one of the biggest crypto success stories of 2026 and noted that Robinhood’s 27 million users are now paying fees in Ether.
He also claimed the chain was trading more volume than any other decentralized exchange, but data from DeFiLlama shows that Robinhood Chain ranked fifth in 24-hour trading volume at $375.15 million. It was behind Solana, Ethereum, Base, and BSC.
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FAQs
How much Ethereum does Bitmine own?
Bitmine holds 5,770,038 ETH as of July 12, 2026, equal to 4.8% of Ethereum's 120.7 million-token supply and 96% of its stated goal to control 5% of the supply.
Why is BMNR stock falling?
BMNR traded at $14.49 on July 13, down from a $14.96 prior close and far below its 52-week high of $71.74, as ether trades around $1,820, well under Bitmine's average purchase cost of roughly $3,476 per token, leaving a disclosed unrealized loss of about $8.66 billion.
How does Bitmine make money from its ether?
Bitmine has staked about 4.92 million ETH, or 85% of its holdings, through its MAVAN validator network, generating a 2.70% seven-day annualized yield and projected annual staking revenue of about $242 million, rising toward $284 million at full scale.
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
Hannah Collymore
Hannah is a writer and editor with nearly a decade of blog writing and event reporting experience in the crypto space. At Cryptopolitan, Hannah contributes to the news page, reporting and analyzing the latest developments in DeFi, RWA, crypto regulation, AI and frontier tech industries. She graduated from Arcadia university with a degree in Business Administration.
