BitMine Stakes $1B in ETH in 48 Hours, Strengthening Market Supply
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Hassan Shitu
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BitMine Immersion Technologies pumped more than $1 billion worth of Ether into contracts in less than 48 hours, a move that is drawing new attention to how corporate staking activity is squeezing Ethereum's supply.
Blockchain data tracked by Lookonchain shows that the company gained 342,560 ETH in shares in the two days leading up to Sunday, one of the largest short-term stock gains on record this year.
Ethereum's staking queue is locked and swells when ETH exits
Staking involves locking Ether into Ethereum's proof system to help secure the network for a yield of between 3% and 5% per year, depending on network conditions.
Once held, ETH cannot be sold immediately and must pass through a validator exit queue before becoming liquid again. BitMine's recent activity is immediately reflected in Ethereum's validating queues.
Confirmation data shows that the login queue has stretched to 12 days and 20 hours, with around 739,824 ETH waiting to be loaded.
In contrast, the withdrawal queue has stalled at six days and 2 hours, representing 349,867 ETH scheduled for withdrawal.
For the first time in months, the number of validators positioned to carry Ether is nearly double that of those preparing to exit, indicating long-term positions rather than short-term liquidity needs.
The locked-in ETH quietly changes the market dynamics
This imbalance is important because it indicates supply congestion. A supply squeeze occurs when the demand for an asset increases and the amount available for trading decreases.
In the case of Ethereum, staking removes ETH from the liquid market by locking it into smart contracts.
When few coins are available on exchanges, even modest demand can affect price movements, especially during periods of thin liquidity.
Ethereum operates in a tighter supply environment than previous cycles. About 28.88% of the total supply of 35.8 million ETH, is currently in stock according to the estimate at the end of December.
New distribution has also slowed since the network transitioned to proof-of-stake, and the EIP-1559 payment method continues to burn some transaction fees, occasionally pushing net supply into negative territory during periods of high activity.
Together, these factors can not only result in selling, but also structurally reduce the amount of Ether circulating in the market.
As ETH trades below $3K, BitMine continues to buy
BitMine's powerful inventory adds another layer to that dynamic. The NYSE US-listed company maintains Ethereum as its primary treasury asset.
According to data from StrategicEthReserve.xyz, BitMine now controls about 4.07 million ETH, worth approximately $12.15 billion, which is around 3.36% of its total supply.
The company has announced a long-term goal of reaching a 5 percent share.
Recent on-chain data supports that strategy, as in December alone, trackers pointed to several large revenue flows, with an estimated 29,462 ETH withdrawn from BitGo and Kraken wallets, which was $88 million at the time.
Earlier announcements revealed that BitMin bought more than $229 million worth of ETH in one week and more than 407,000 ETH in the past 30 days, although Ether traded nearly 40% below the peak of the cycle.
Notably, other major corporate owners are also holding most of Ether. Sharplink Gaming, the second largest corporate owner, revealed that it has staked almost all of the ETH and generated 9,701 ETH in prize money, which is about $29 million.
The third-ranked Ether machine has fully covered its $1.49 billion treasury and has reported a consistent position among the top validators in terms of reward efficiency.
These moves come as Ether continues to trade below $3,000, hovering around $2,978 after a modest monthly rebound this week.
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