Behind Bitmine's $3.3 billion ETH staking: How institutions are stirring the supply and demand balance in the staking market

Bitmine has staked an additional 86,400 ETH (approximately $266 million) in the past 5 hours, bringing its total staked amount to 1,080,512 ETH, with a total value of $3.33 billion. This operation further highlights the dominant role of institutional funds in the Ethereum staking ecosystem and also intensifies the supply-demand imbalance in the staking market—withdrawal queues have been cleared, while deposit queues have accumulated 1.78 million ETH, with wait times exceeding two weeks.

Institutional Staking Reaches New High

Bitmine’s staking landscape

According to the latest data, Bitmine currently holds 4.143 million ETH, accounting for 3.4% of Ethereum’s circulating supply. Of this, 1,080,512 ETH are staked, representing a quarter of its total holdings. At the current ETH price of $3,089.41, this staked asset is valued at $3.33 billion.

What’s even more noteworthy is Bitmine’s pace of accumulation. In just over two weeks starting from December 26, 2025, this institution has deposited nearly 660,000 ETH into staking, valued at approximately $2.1 billion at the market price at that time. This sustained large-scale increase reflects the firm’s strong confidence in ETH’s long-term prospects.

The staking yield flywheel has started

At the current network yield of 2.5%, the 1,080,512 ETH staked by Bitmine can generate about 20,000 ETH annually, equivalent to $60-70 million at current prices. This creates a continuous on-chain income machine—through the accumulation of staking rewards, Bitmine’s ETH holdings and staking scale form a positive feedback loop.

Reversal Phenomenon in the Staking Market

Extreme imbalance of supply and demand

This wave of institutional staking has caused a historic reversal in the staking market. According to the latest on-chain data:

• Withdrawal queue: completely cleared, withdrawals processed instantly
• Deposit queue: accumulated 1.78 million ETH, with wait times exceeding two weeks
• Historical comparison: this is the first time since July 2024 that there have been zero withdrawal delays

Such a stark divergence in supply and demand is extremely rare in Ethereum’s staking history. Last September, there were 2.67 million ETH queued for withdrawal with a wait time of up to 27 days. Now, the scene is completely reversed—funds eager to stake are lining up.

Technical upgrades pave the way for institutional entry

This staking boom did not happen out of nowhere. The Pectra upgrade in May 2025 increased the maximum effective balance per validator from 32 ETH to 2,048 ETH and supported auto-compounding. These technological improvements significantly lowered the barriers and complexities for institutional capital to enter, enabling large players like Bitmine to deploy funds more efficiently.

Bitmine’s Strategic Ambitions

Not just staking, but building the ecosystem

Bitmine’s strategy goes far beyond simple staking arbitrage. The company is advancing its own MAVAN validation network, scheduled to launch in Q1 2026. This means Bitmine is not only leveraging staking rewards but also constructing its own infrastructure, aiming to occupy a more central position within the Ethereum ecosystem.

CEO’s long-term price targets

Bitmine CEO Tom Lee recently cited VanEck’s Ethereum outlook, providing two price targets: a baseline scenario where ETH reaches $22,000 by 2030, and an optimistic scenario of $154,000. While these targets are aggressive, they reflect institutional expectations of long-term growth potential for ETH.

Market Impact Assessment

Reallocation of liquidity

Bitmine’s large-scale staking is reshaping the liquidity structure of the Ethereum ecosystem. On one hand, it injects continuous capital into the staking ecosystem; on the other hand, it causes relative tightness in the secondary market—large amounts of ETH are locked in staking.

Chain reaction in the DeFi ecosystem

Besides Bitmine, other Ethereum treasury companies like SharpLink are also staking large amounts of ETH on Linea. These institutional actions collectively promote the prosperity of the staking ecosystem, providing DeFi protocols with more assets to stake and yield opportunities.

Future Outlook

Based on current data and trends, several directions are worth noting:

First, if deposit queues continue to pile up, it could further increase the entry costs and waiting times for staking, potentially attracting more small and medium investors to rush in before yields decline.

Second, once Bitmine’s MAVAN validation network goes live, it may create new competitive dynamics, pushing the further professionalization and institutionalization of the staking market.

Third, the continuous expansion of institutional staking scales is changing the token distribution pattern of Ethereum. This increased concentration could enhance ecosystem stability but also raise discussions about decentralization.

Summary

Bitmine’s recent operation of staking 86,400 ETH may seem like routine asset allocation, but it reflects deeper market changes: institutional funds are entering Ethereum’s staking ecosystem on a large scale, shifting the market from “withdrawal congestion” to “deposit queues.” This not only alters the supply-demand landscape of staking but also signals that Ethereum’s ecosystem may enter a new development phase—dominated by institutions, with improved infrastructure and mature yield models.

For market participants, this wave of institutional activity warrants ongoing attention. It reflects confidence in ETH’s long-term prospects and may also herald a new cycle of crypto market reallocation.