Third OTC Deal in Recent Weeks
The Ethereum Foundation has finalized its third over-the-counter (OTC) sale of ether (ETH) to BitMnie Immersion Technologies, transferring 10,000 ETH at an average price of $2,292 per coin. This latest transaction, announced on Friday, brings the total value of recent ETH sales to BitMine to approximately $47 million within just seven days. The Foundation’s earlier sale last week involved another 10,000 ETH at a higher average price of $2,387 per coin, highlighting a rapid sequence of large-scale deals with the same counterparty.
These OTC transactions are part of the Foundation’s stated treasury management strategy, which involves periodic conversions of ETH holdings into fiat currency. The organization’s goal is to balance its exposure and fund ongoing operations through such sales. With the latest deal, the cumulative ETH sold by the Foundation to BitMine since March now stands at 25,000 ETH—comprising three distinct transactions at varying price points.
The onchain transfer for the most recent 10,000 ETH sale is expected to originate from an Ethereum Foundation-controlled multisig wallet.
Foundation Converts ETH Amid Price Dip
The timing of these sales coincides with a period when ether is trading well below its all-time high. At around $2,303 per coin according to CoinMarketCap data cited in recent reports, ETH remains down more than 53% compared to its August 2023 peak of $4,953. On paper, the Foundation is selling into a subdued market; however, its approach appears driven by operational needs and risk management rather than speculation on price recovery.
Last week’s unstaking event saw the Foundation withdraw 17,035 ETH—valued at roughly $40 million—from staking contracts before proceeding with these sales.
It’s unclear whether this shift away from staking signals a long-term change in treasury allocation or simply reflects short-term liquidity planning. What is certain is that the Foundation has dropped its previously stated goal of maintaining 70,000 staked ETH for now.
BitMine Emerges as Key ETH Buyer
BitMine Immersion Technologies has rapidly become one of the most significant buyers of ether from institutional sellers. Chaired by Tom Lee—well known for his role at Fundstrat—the company has added over 101,900 ETH in its largest weekly purchase this year alone. As of Monday, BitMine’s total holdings exceeded 5.078 million ETH, with an aggregate valuation topping $11.7 billion at current prices.
Despite this massive exposure, BitMine faces an unrealized loss exceeding $6.3 billion on its ether position due to market declines since purchase. The company’s aggressive accumulation suggests a strong conviction in Ethereum’s long-term prospects or a strategic positioning for future opportunities within the ecosystem.
According to coindesk.com, proceeds from these deals are earmarked for core operations, protocol research and development, ecosystem growth initiatives, and ongoing community grants.
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Proceeds Fuel Research and Community Grants
The Ethereum Foundation has been transparent about how it allocates funds raised from asset sales. The nearly $47 million generated through recent transactions with BitMine will support protocol R&D efforts as well as community-focused grants and ecosystem development activities. In March alone, a previous sale of 5,000 ETH raised approximately $10.2 million for similar purposes.
Such allocations are not new: last July saw a comparable sale of 10,000 ETH to Sharplink—a rival treasury firm—demonstrating that periodic liquidations have become an established part of the Foundation’s financial playbook.
Why It Matters
These ongoing OTC sales highlight both shifting priorities within Ethereum’s core organization and evolving dynamics among major institutional players like BitMine. For developers and grant recipients relying on Foundation support, this means continued funding even during bearish cycles—a practical impact that extends beyond headline numbers.
But for market observers tracking large wallet movements and institutional buying patterns, questions remain about how such concentrated purchases—and subsequent unrealized losses—might influence future governance or network stability. Will BitMine continue accumulating despite mounting paper losses? That remains uncertain.
Core Insights
- •In the past week, the Ethereum Foundation sold 20,000 ETH to BitMine for about $47 million in two OTC deals.
- •The latest sale of 10,000 ETH was completed at an average price of $2,292 per ETH and announced on Friday.
- •Since March, the Foundation has sold a total of 25,000 ETH to BitMine at prices ranging from $2,043 to $2,387 per ETH.
What to keep in focus
If the Ethereum Foundation proceeds with the onchain transfer of 10,000 ETH from its multisig wallet to BitMine as announced on Friday, it will immediately increase BitMine’s holdings beyond 5.078 million ETH and bring the Foundation’s total sales to BitMine in the past week to approximately $47 million; the exact timing of the onchain transfer remains unclear.