Just a month after its first transaction with BitMine, the Ethereum Foundation announced that it would once again sell a large amount of Ether tokens to a digital asset treasury (DAT) company.
BitMine receives an additional 10,000 ETH from the Ethereum Foundation
In an April 24 post on the X Platform, the Ethereum Foundation revealed that it had “finalized the terms” of a 10,000 ETH sale with BitMine as the counterparty for over-the-counter (OTC) transactions. The OTC transactions reportedly closed for an average price of $2,387, equating to approximately $24 million in value.
This latest transaction comes one month and 10 days after the Ethereum Foundation sold 5,000 ETH (worth approximately $10.21 million at the time) to a digital asset treasury firm led by chairman Tom Lee. Similar to previous sales, proceeds from this transaction will fund EF’s core operations and activities, including protocol research and development, ecosystem development, community grant funding, and more.
As revealed in the previous transaction, this sale is part of ongoing financial management activities and policies, in which the Ethereum Foundation revealed that it will sell Ether to keep its fiat-denominated assets within its Opex (Operating Expenses) buffer target. It is worth noting that these token sales have not been well-received by the crypto community, with many believing that the foundation could generate income through staking rather than outright sales.
Interestingly, the Ethereum Foundation has also been staking some of its ETH holdings for the past few months, making this latest transaction even more surprising. At the beginning of the month, EF moved closer to its staking goal of 70,000 Ethereum after sending 45,000 Ether tokens to the Beacon deposit contract.
However, the fact that the counterparty for this 10,000 ETH transaction is BitMine should bring some calm to the crowd. Since the largest Ethereum corporate holders are constantly looking to expand their inventory, the market may be relatively confident that recently acquired tokens are unlikely to enter the public market.
The digital asset treasury firm revealed earlier this week that it had purchased 101,627 tokens between April 13 and April 19. The company, chaired by Tom Lee, currently holds 4,976,485 ETH, which is approximately 4.12% of the cryptocurrency supply.
What’s interesting is that BitMine is believed to be aiming to hold around 5% of the total supply of the second-largest cryptocurrency. The company is only a few percentage points away from achieving its goal, and the company’s acquisition spree is unlikely to stop any time soon.
Ethereum price overview
As of this writing, the price of ETH is around $2,316, down 0.6% in the past 24 hours. According to data from CoinGecko, the altcoin has fallen about 5% in the past seven days.
The price of ETH on the daily timeframe | Source: ETHUSDT chart on TradingView
Featured image from iStock, chart from TradingView
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