Bitmine has deposited approximately $219,000,000 worth of 74,880 Ethereum into Ethereum’s Proof-of-Stake Protocol, which is the first time that Bitmine has done a staking transaction.
It comes at a time when the Ethereum (ETH) treasury company seeks yield generation from its 4.066 million ETH holdings.
EmberCN monitors indicate that the deposit was made on 27 December. With an annual yield of 3.12%, the entire Treasury would produce approximately 126,800 Ethereum per year.
According to the current Ethereum price, the staking reward would amount to approximately $371,000,000.
First stake deployment by 4M+ Ethereum Treasury
Bitmine has made its first deposit of 74 880 ETH to generate staking revenue from their holdings. The Ethereum holdings were acquired through systematic purchases similar to Strategy’s Bitcoin purchase program.
Bitmine stakes Ethereum to indicate that it intends to maintain the cryptocurrency for the long term, and not actively trade.
It is possible to withdraw ETH that has been staked, however the process requires a certain amount of time depending on how things are going in the network. Due to the lock-up time, staking is unsuitable for Treasury assets which may require rapid liquidation.
Initial deployment of $219 millions tests the stake infrastructure prior to potentially investing the entire treasury.
Bitmine, with 4.066 Million ETH and current Ethereum price of $11.9 Billion, holds approximately that amount. The full staking of Ethereum would produce over 126,000 ETH in passive income annually.
Lee targets $7k-$9k Ethereum by early 2026
Bitmine chairman Tom Lee told CNBC Ethereum may reach $7,500 to $9,000. Lee stated that the future of cryptography was bright on December 26. “is still really good for the next five to ten years.”
“Wall Street wants to tokenize everything, you know, whether that’s Vlad at Robin Hood or Larry Fink at BlackRock and that’s gonna bring a lot of efficiencies,” Lee stated. “But it really brings the use case forward for something like Ethereum.”
Lee identified tokenization, as the primary driver of Ethereum’s growth. He predicted that Ethereum’s token would reach $20,000 over time as it competes against traditional payment systems.
In response to the crypto October 10 reverse, Chairman called it “a liquidation event that was similar to 2022 when FTX collapsed.” Lee said that the markets needed eight weeks to get back on their feet and recover. “I think that’s what’s happening now,” He said.
Lee discussed Bitcoin as well, saying that it suffers. “gold envy” As gold’s value reaches $30 trillion.
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Source: crypto.news
