Bitmain (BMNR) saw its stock price fall sharply on the New York Stock Exchange, closing at $15.69 after hitting an intraday low of $14.67, far below its 52-week high of $71.74. The decline continued in pre-market trading with a 5.92% drop, reflecting persistent investor pessimism.
Ethereum hoarding and the 'Alchemy of 5%' strategy
Bitmain has been aggressively accumulating Ethereum, recently purchasing 42,197 ETH for about $73 million, bringing its total holdings to 5,742,237 ETH — roughly 4.8% of the total circulating supply. The company reiterated its goal of securing 5% of all Ethereum by 2026, a plan it calls the 'Alchemy of 5%'. In a July letter to shareholders, Bitmain described Ethereum as a solution to the 'Uncanny Valley of Wealth' problem and emphasized its focus on building crypto assets.
The firm's total crypto and cash holdings stand at $11.3 billion, with Ethereum making up the vast majority. Cash and securities account for only $482 million. Bitmain operates as a Bitcoin and Ethereum network-based company, actively using protocol-level staking and DeFi mechanisms.
MAVAN staking infrastructure and revenue outlook
Bitmain launched its proprietary staking infrastructure, 'Made in America Validator Network' (MAVAN), in 2026. MAVAN is dedicated to staking Bitmain's own assets and currently has 4,917,189 ETH staked, representing 85% of its Ethereum holdings. The company expects to generate approximately $284 million annually in staking rewards once fully operational. This staking strategy is a core part of the 'Alchemy of 5%' roadmap, aimed at increasing asset value through protocol-layer activity and attracting institutional investors over the long term. Bitmain anticipates a rise in institutional ownership following its inclusion in the Russell 1000 index.
Slowing weekly purchases and market concerns
Market analysis indicates that Bitmain's weekly Ethereum purchase rate has slowed, suggesting the company may be deliberately moderating its accumulation pace. This has raised questions about the disconnect between its aggressive asset acquisition and the falling stock price. Investors are increasingly skeptical about Bitmain's actual business model and profitability. The broader crypto market downturn has also weighed on Bitmain's stock, as crypto-related equities broadly declined. Ethereum's price volatility has further dampened sentiment toward the Ethereum-centric firm.
Benzinga reported that Bitmain fell 5.92% in pre-market trading on Friday, after closing 2.22% lower at $23.02 in the previous session. Analysts attribute the decline to short-term profit-taking and uncertainty over the long-term strategy. Despite the Russell 1000 inclusion, which could bring institutional inflows, restoring investor confidence remains a challenge. Experts argue that simply expanding Ethereum holdings and staking rewards may not be enough; Bitmain needs to demonstrate a sustainable business model and clear revenue structure. Whether the projected $284 million in annual staking rewards materializes and translates into shareholder value will be key. Bitmain's future hinges on its strategic execution amid crypto market volatility, with all eyes on 2026 when the 5% target is due.