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Ethereum Foundation Offloads Another 10,000 ETH to BitMine in Third OTC Deal

By Telemac

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Ethereum Foundation Offloads Another 10,000 ETH to BitMine in Third OTC Deal in Two Months

For the third time in just two months, the Ethereum Foundation has proceeded with a direct sale of ETH tokens to BitMine Immersion Technologies, raising fresh questions from the community about its treasury management strategy. The over-the-counter transaction involved 10,000 ETH at an average price of $2,292 per token, for a total value of approximately $22.9 million. This latest sale, announced publicly by the foundation on social media, takes place against a backdrop of repeated disposals that have sparked legitimate concerns about the organization’s financial management and its priorities in capital allocation.

Background

ETH treasury sales by the Ethereum Foundation are not a new phenomenon. In June 2024, the foundation publicly stated it would limit ETH sales in order to preserve the stability of its balance sheet and demonstrate long-term confidence in the Ethereum ecosystem. However, since the start of 2026, the organization has significantly altered its approach. Rather than maintaining ETH in staking as a strategic reserve, it has progressively sold increasingly larger portions of its holdings on the OTC market, using institutional counterparties such as BitMine Immersion Technologies, listed on the NASDAQ under the symbol BMNR.

The latest sale brings the total disposals to BitMine to 25,000 ETH since March 2026, for a cumulative value of approximately $56 million at transaction prices. The chronological table of operations reveals an acceleration in the pace of sales over the weeks. In March 2026, a first transaction involved 5,000 ETH at a unit price of approximately $2,043, generating around $10.2 million. Approximately one week before the May transaction, a second operation covered 10,000 ETH at an average price of $2,387, for an amount of approximately $23.9 million. Finally, the May transaction involved an additional 10,000 ETH at $2,292, totaling $22.9 million.

Alongside these sales, the Ethereum Foundation also announced the unstaking of 17,035 ETH from its staking positions the previous week, representing an estimated value of approximately $40 million at current prices. This decision appears to contradict the initial goal of maintaining up to 70,000 ETH in staking, an objective that had been presented as a key component of the foundation’s treasury strategy during earlier official communications. The combination of ETH sales and the disengagement from staking suggests a shift in posture by the organization regarding the management of its digital balance sheet.

The Facts

The most recent transaction, completed in May 2026, involved 10,000 ETH transferred to BitMine Immersion Technologies for a total of $22.9 million, based on an average price of $2,292 per token. According to data reported by the foundation on social media, this sale was carried out as part of its usual operational treasury management, which notably covers Ethereum protocol research and development, ecosystem grant funding, and support for community initiatives. The foundation denied any disengagement from its long-term conviction on Ethereum, specifying that these operations did not reflect a change in its view on the network’s potential.

The total sales made on behalf of BitMine Immersion Technologies now amount to 25,000 ETH for a cumulative value of approximately $57 million. This figure represents less than 0.3% of BitMine’s total ETH holdings, but constitutes a significant share of the Ethereum Foundation’s treasury. The BitMine company, chaired by Thomas Lee, a renowned Wall Street figure and strategist, has accelerated its ETH accumulation strategy over the past months, bringing its total reserves beyond 5 million tokens and consolidating its position as the largest publicly traded company holding ETH on its balance sheet.

BitMine’s latest financial reports, filed with the SEC in its March 2026 8-K filing, reveal the considerable scale of its crypto treasury. The company reported holding 4.66 million ETH as of March 22, 2026, valued at approximately $11 billion in combination with its other digital assets, cash, and alternative investments. By the end of March 2026, this figure had risen to 4.73 million ETH according to management statements, illustrating the sustained pace of market purchases and the company’s ability to execute its treasury expansion strategy without slowing down.

ETH’s current price stands at around $2,303 at the time of writing, down more than 53% from its all-time high of $4,953 reached in August 2024. This prolonged correction has certainly weighed on the valuation of treasuries held by organizations owning ETH, but has not slowed BitMine’s appetite for accumulating more tokens. The company recently completed the acquisition of 101,901 ETH in the space of one week, constituting the largest weekly purchase of the year across all periods, according to on-chain flow tracking data.

Analysis

BitMine Immersion Technologies’ strategy fits into a broader movement toward building an institutional treasury centered on Ethereum. Dubbed the « MicroStrategy of Ethereum » by several financial analysts, the company has built its reputation on aggressive accumulation of ETH tokens, using cash flows from its Bitcoin mining activities to finance these acquisitions. The company’s chairman, Thomas Lee, a figure traditionally associated with bullish Bitcoin analysis, has publicly stated that the company believed Ethereum was in the final stages of a « mini crypto winter, » making the current period particularly conducive to accumulation at prices reduced compared to prior peaks.

BitMine’s position differs significantly from that of the Ethereum Foundation on the question of staking. While the foundation unstaked a portion of its ETH, BitMine on the contrary accelerated the staking of its holdings. At the time of the latest transaction, approximately 83% of the ETH held by BitMine, or 4.19 million tokens representing a value of approximately $9.5 billion, were locked in staking protocols. This percentage is up from 70% the prior week, suggesting that the company anticipates future appreciation of the token through accumulated staking rewards and the future reduction in circulating supply via lock-up mechanisms.

Community criticism has been vocal and persistent. On the X platform, many users demanded more transparency regarding the use of funds from the sales. Questions centered primarily on the foundation’s operational spending volume, on why no developers appeared to accept ETH directly as payment, and on the compatibility of these massive sales with the initial commitment to limit distributions. The foundation responded that funds were used exclusively to finance its current operations, including protocol Research, ecosystem grants, and community support, without however providing granular details on the budget allocation.

It is relevant to consider this dynamic within the broader context of cryptocurrency market evolution in 2026. The year has been marked by growing attention from U.S. regulators, particularly with the Clarity Act under discussion in Congress, which could establish a clearer regulatory framework for digital assets. BitMine notably highlighted that potential regulatory clarity would constitute a potential catalyst for cryptocurrencies, viewed by some investors as alternative stores of value during periods of geopolitical uncertainty and deterioration of U.S. public finances.

Market Reactions

ETH’s price has experienced mixed performance over the past weeks. After posting a gain of approximately 2.7% over the five days preceding the latest transaction, the token remains weighed down by its inability to break through the $2,500 resistance level. This technical zone, which also corresponds to the top of the consolidation range in which ETH has been trading for several months, constitutes a major obstacle for buyers and fuels short-term investor caution.

Spot market trading volumes did not show significant acceleration upon announcement of the transaction, suggesting the market had already partially anticipated the information. ETF flows for spot Ethereum in the United States remain an indicator to watch closely, as they reflect institutional appetite for the asset and constitute a potential source of additional demand if macroeconomic conditions improve. The market also remains sensitive to the monetary policy decisions of the U.S. Federal Reserve, whose rate guidance directly influences the opportunity cost of digital assets and the risk premium demanded by investors on alternative asset classes.

Outlook

Several uncertainties persist regarding the Ethereum Foundation’s next moves. The increasing frequency of sales raises questions about the foundation’s ability to maintain its financial commitments without further drawing down its ETH treasury. If development operations and ecosystem grants require regular fiat cash flows, the sale of digital assets constitutes a potential bearish pressure source on the market, especially when sold volumes represent unit amounts as significant as $22 to $24 million per transaction. The community is also watching whether the foundation will proceed with further sales in the coming weeks or stabilize its treasury position.

On BitMine’s side, the accumulation strategy appears set to continue actively. The company stated it aims to reach a representation of 5% of ETH’s circulating supply, an ambitious target that would see it hold more than 6 million tokens if circulating supply remains stable. This purchase ambition is supported by significant available cash reserves and access to capital markets following the company’s admission to the main NYSE in April 2026, accompanied by a board-authorized $4 billion share buyback program. This financing capacity positions BitMine as a structural player in the Ethereum accumulation market for years to come.

Beyond these immediate considerations, the Ethereum Foundation’s situation also raises questions about the ability of decentralized organizations to maintain coherent treasury strategies over the long term. Unlike a private company that can issue shares or bonds to finance itself, an open source foundation depends entirely on its token reserves and potential donations to honor its commitments. This structural asymmetry can create tensions between the need to preserve the balance sheet and the need to finance development, especially during prolonged periods of declining digital asset prices.

Sources

Telemac
Telemachttp://cryptoinfo.ch

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