Ether sees liquidity risk as BitMine lifts treasury amid dip

BitMine holds 4.42M ETH (~3.66%); value ~$8.7-$9.6B

As of Feb 23, 2026, BitMine has expanded its Ethereum treasury to 4.42 million ETH, equal to about 3.66% of the network’s supply, as reported by The Block. The same reporting places the on-chain holdings near $8.7 billion in value and cites approximately $171 million in cumulative staking revenue.

Separately, CoinCentral estimated BitMine’s Ethereum position at roughly $9.6 billion and noted the company is moving toward a goal of owning about 5% of ETH’s supply. Differences across reports reflect timing and prevailing market prices.

Why BitMine is buying: 5% supply target and staking income

The company’s rationale combines a supply-threshold objective with staking-driven income. Accumulating during market weakness is framed as consistent with a long-cycle thesis rather than short-term trading.

Staking converts idle treasury into recurring rewards, which can partially offset drawdowns and smooth cash flows. The approach does not immunize the balance sheet from volatility, but it can add programmatic yield while tokens remain custodied.

Framing the strategy in simple terms, Tom Lee, Chairman of BitMine, has described the goal as “alchemy of 5%.”

Market impact and risks: liquidity, valuation gap, SEC scrutiny

ETHNews has reported that large-scale accumulation like BitMine’s can reduce liquid ETH available on exchanges, potentially tightening order books and affecting execution for other participants. Any liquidity impact will likely vary with how much is staked versus held liquid and with exchange inventory levels.

Yahoo Finance has noted that some digital-asset treasury peers trade at discounts to their net asset value, suggesting investors are pricing governance, financing, and execution risks alongside token exposure. Such gaps can widen during drawdowns and narrow when sentiment improves, but they are not guarantees of future performance.

The Wall Street Journal has reported that the U.S. Securities and Exchange Commission and FINRA are scrutinizing issuers that raise capital to buy crypto, with attention to disclosure practices and potential Regulation Fair Disclosure considerations around market-moving updates. Heightened oversight could influence how treasury strategies are communicated and financed.

At the time of this writing, Ethereum trades near $1,827.69, based on data from CoinDesk. This contextualizes the valuation range above and underscores that treasury marks fluctuate with spot prices.