BitMine is generating passive income through Ethereum staking.

Ethereum, which has been experiencing noteworthy developments in the cryptocurrency market recently, continues to offer innovations in the strategies of institutional investors. Bitmine, which holds one of the largest corporate treasuries of Ethereum, has locked hundreds of millions of dollars in assets into the network by staking Ethereum for the first time and has activated its passive income strategy.

According to data shared by Lookonchain and Wu Blockchain, Bitmine, under Tom Lee's Fundstrat, has quickly invested 154,176 ETH into the Ethereum Proof of Stake staking system. With this move, the company has started to generate regular returns on the ETH assets it holds on its balance sheet for the first time. Initially, 74,880 ETH was sent to staking, and it has been observed that this number doubled shortly thereafter. At current prices, the total value of this staked amount is approximately close to 451 million dollars.

The details of Bitmine's Ethereum staking strategy were published by on-chain analyst EmberCN. Bitmine currently holds 4,066 million ETH, making it the largest holder of Ethereum in the world. Considering the annual yield rate of 3.12%, if the company directs all its assets to staking, it could generate approximately 126,800 ETH in annual income. This amount translates to roughly 371 million dollars in passive income at current prices.

Market participants evaluate this significant step from two perspectives. On one hand, locking up the supply of ETH through staking can support long-term price dynamics by reducing the circulating amount. On the other hand, discussions continue on whether the staking revenues generated might create selling pressure in the future.

Another noteworthy development that occurred on the same day was at SharpLink Gaming. According to Lookonchain data, the company withdrew 35,627 ETH from the staking system to rebalance its portfolio. This counter-move once again showcases the different risk and return strategies adopted by institutional Ethereum investors.

Bitmine's staking initiative is seen as a significant milestone regarding the institutional adoption of Ethereum. It will be closely monitored in the coming period whether similar treasuries will follow the path taken by Bitmine.