Crypto mining firm Bitmine has announced an increase in its Ethereum (ETH) holdings to 5.7 million coins, representing approximately 4.7% of the total ETH supply, edging closer to the 5% target earlier set by prominent analyst Tom Lee. Simultaneously, the company has been added to the Russell 1000 Index, a move likely to drive significant passive institutional capital inflows.
Institutional Impact of Index Inclusion
Inclusion in the Russell 1000 means Bitmine will automatically enter the portfolios of numerous index funds and ETFs. This passive buying pressure could help mitigate the ongoing sell-off in BMNR shares. However, analysts caution that the stock has already plunged over 90% from its year-to-date peak, underscoring market concerns over the company's high-leverage strategy and sensitivity to ETH price volatility.
Market Performance and Staking Revenue
Despite the aggressive accumulation, ETH price fell approximately 8% over the same period, while Bitmine's stock BMNR recorded a weekly loss of 13%, extending a decline of more than 90% from its year-to-date high. Nevertheless, Bitmine is generating an estimated $246 million in annualized yield by staking its ETH holdings, providing a stable stream of cash flow to support its operations.