Points of Focus:

• Public companies are shifting from BTC reserves to large-scale ETH accumulation, led by BitMine’s push towards 5% of all ETH.
• Corporate ETH treasuries introduce new dynamics around staking power, liquidity tightening, and potential supply squeezes.
• As single entities gain outsized influence, Ethereum faces a rising “too-big-to-fail” risk that could test its decentralization.

On 24 November 2025, BitMine Immersion Technologies (BMNR), the Tom Lee-led public-listed company, disclosed that it now holds 3,629,701 ETH coins, roughly 3% of Ether’s (ETH) entire circulating supply, and worth nearly $10.3 billion at the price used for the disclosure. 

BitMine describes this as “two-thirds of the way” toward its target of acquiring 5% of ETH’s total supply. This shift indicates a broader trend: public companies are moving away from a purely Bitcoin-focused treasury strategy to an aggressive ETH accumulation approach. 

BitMine now has 3% of the ETH supply

Two-thirds on the way to the ‘Alchemy of 5%’

👏👏👏👏 https://t.co/7gvPmCC7Ql

— Thomas (Tom) Lee (not drummer) FSInsight.com (@fundstrat) November 24, 2025

It began in June 2025, when firms like SharpLink Gaming and Bit Digital pivoted from BTC holdings. Bit Digital sold 280 BTC and raised $172 million to buy 100,603 ETH. SharpLink accumulated 859,853 ETH worth $3.5 billion since June, earning 5,671 ETH (around $22 million) in staking rewards. Coinbase also holds 136,782 ETH at $569.61 million (as of October 2025).

This pivot may have powerful implications for Ethereum’s economics, network power dynamics, and systemic risk.

Why corporates are loading up ETH

Bitcoin (BTC), with its fixed supply and “digital gold” status, was once the de facto reserve asset dominating corporate treasuries. But Ethereum now offers advantages that appeal to firms with a long-term, more operational view of blockchain assets. So what brought about the shift?

• Native staking yield: Ethereum’s proof-of-stake model allows holders to earn passive income through its native staking mechanism. This is a more attractive yield-bearing proposition than dormant BTC holdings for companies managing large treasuries.
• Balance-sheet flexibility: For BitMine, ETH sits alongside cash and other crypto holdings in a diversified corporate treasury, making it a liquid, strategic asset, not just a speculative bet (like BTC). 
• Long-term value capture: Ethereum is on the cusp of a broad institutional wave, positioning ETH not just as a speculative or treasury asset, but as core infrastructure for future financial systems. 

Combined, these factors are pushing more companies to consider ETH as a treasury asset with operational and strategic value.

What happens when a single entity holds 4-5% of ETH supply

If BitMine does reach its 5% target of Ether’s total supply, the concentration might lead to real network effects.

Centralized staking & network influence

With 5% of ETH, BitMine will become a major validator or a major delegator of staking power. That concentration could influence network governance, transaction finality timing, and validator decisions.

Supply tightening and market impact

Large-scale accumulation by a single entity will remove substantial ETH volumes from the open market, reducing circulating liquidity and potentially impacting supply dynamics. If ETH demand continues rising from institutions, retail, and DeFi, while supply shrinks through staking and burn mechanism, any future supply squeeze could drive up its price, and also concentrate risk.

“Too-big-to-fail” risk

A corporation holding more than 5% of the supply becomes economically connected to Ethereum’s stability. A sharp loss, bankruptcy, or forced liquidation involving such a large holder can have potential market-wide consequences.

However, Tom Lee tried to allay those fears in his Anthony Pompliano interview, stating, “Up to 10% ownership levels would not threaten Ethereum’s decentralization.”

Tom Lee (@fundstrat) says there is not a bubble in Artificial Intelligence right now. pic.twitter.com/V3XC1WerLV

— Anthony Pompliano 🌪 (@APompliano) October 24, 2025

Although this shift strengthens institutional participation, it also concentrates economic power. If multiple public companies follow BitMine’s playbook, Ethereum’s decentralization will be tested in new ways, economically, if not technically.