- The Ethereum Foundation sold 10,000 ETH OTC (~$23 million) in the latest three trades to BitMine, for a total of $47 million last week via Safe multisig for R&D and grants.
- BitMine now has 4.2% of the ETH supply, holding 4.19 million ETH ($9.48 billion, 82% of the holding) after adding 162,000 ETH ($366 million); Eyes 5% “floor of scarcity”.
- EF secures 17k ETH, smashing 70k target amid sales; The backlash is being caused by burn rate opacity despite spending $10 million in Q1 ESP on ZK, security and communication.
The Ethereum ecosystem is going through a brief period of major structural change, with institutional consolidation facing some backlash from the community. As of May 4, 2026, the Ethereum Foundation (EF) has received some skeptical feedback following a series of high-volume over-the-counter (OTC) sales that saw tens of millions of dollars of ETH move into the hands of Bitmine Immersion Technologies.
The Foundation emphasizes that these transactions are merely routine treasury management to fund research and development of the protocol and ecosystem grants. But it is the volume and frequency of sales that has sparked controversy on social media. The question raised by the debate that remains is, in a decentralized world, how should the primary non-profit administrator of the network manage its wealth without disturbing the community?
Buy BitMine for $47 million
The latest chapter in the 2026 Ethereum treasury saga was revealed over the past week. According to official disclosures from Ethereum FoundationThe organization has finalized the terms of the sale of 10,000 Ethereum at an average price of $2,292.15 via an over-the-counter transaction. The counterparty to this deal has been confirmed to be BitMine, led by Tom Lee, Wall Street veteran and founder of Fundstrat.
On-chain and official data indicate that this was the third such transaction in a remarkably short period. In just seven days, the Ethereum Foundation has dumped nearly $47 $1 million in ETH to BitMine. The sale was made through A multisig safe (0x9fC3dc011b461664c835F2527fffb1169b3C213e), a move the foundation describes as necessary to fund “core operations, protocol research, and community grant funding.”
However, the rapid succession of these sales has raised structural concerns concentration risk. By relying on a single repeat buyer like BitMine, an organization may create a dependency that the community fears will become a liability. As one critic on X pointed out, “What if BitMine stopped buying? What would $47 million in 7 days mean for the organization’s actual monthly burn rate?”
BitMine’s Bold $9.5 Billion Storage Strategy
while Ethereum Foundation SellsTom Lee’s BitMine is aggressively accumulating and stacking. Early in the morning of May 1, 2026, BitMine Bet another 162,088 ETHWith a value of approximately $366 million.
BitMine’s total ETH now stands at 4,194,029 ETH, worth approximately $9.48 billion. These numbers represent approximately 82.59% of the company’s total holdings. BitMine has quickly risen to become one of the most dominant entities in the Ethereum staking scene, with its total holdings now representing more than 4.2% of the total supply of ETH.
Tom Lee, Chairman of BitMine, has been vocal about his bullish outlook for 2026. Despite a “mini-crypto winter” caused by a major leverage reset in October 2025, Lee asserts that Ethereum is “the settlement layer on Wall Street.” BitMine’s goal seems to be to take over 5% of the total supply of ETHa milestone that will cement the company as the most influential private stakeholder in the network’s security layer.
Breaking the staking target of 70,000 ETH
Perhaps the most puzzling development for observers is the recent decision by the Ethereum Foundation to sell part of its private holdings. In June 2025, the institution identified a shift towards active deployment of its treasury assets, setting an internal milestone of Nearly 70,000 ETH.
However, last week, the establishment Unencumbered 17,035 Ethereumeffectively defeating its stated goal. The move comes at a time when the network’s broader staking rate is around 30%. The decision to back away from the staking target while simultaneously selling millions to an institutional partner has created a “transparency gap” that the community is looking to close.
Market analysts suggest that deleveraging may be a response to immediate liquidity needs or a strategic repositioning of assets following success pExtra upgrade in May 2025, significantly improving verification efficiency and raising the maximum effective balance for auditors (EIP-7251). Whatever the technical rationale, the “sell and don’t bet” idea has sparked a wave of societal skepticism.
Community reaction
The Ethereum community has never been shy about voicing its concerns, and the recent $47 million sell-off caused quite a stir. One widely shared comment on X captured the sentiment perfectly:
The frustration stems from the lack of precise details regarding the organization’s operating expenses. While EF issues semi-annual reports, the speed with which these millions are being liquidated indicates a monthly consumption rate that some find excessive for a non-profit entity.
And in defense of the institution Ecosystem Support Program (ESP) Report Q1 2026 It shows that he allocated approx 10 million dollars In the first three months of the year alone. These funds were directed towards high impact areas such as:
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- Zero Knowledge Infrastructure: Official verification of zkVMs and GPU acceleration.
- Protocol security: Poseidon cryptanalysis and security audit.
- Global Awareness: Developer events in Seoul, Hong Kong and Buenos Aires.
Despite these disclosures, the “cash vs. crypto” debate persists. If the Ethereum Foundation believes $ETH is the future of finance, critics argue that more core contributors should be willing to accept the native token as compensation, thus reducing the need for massive off-market sales to flood the market.
Post-Bactrian Ethereum and beyond
To understand current treasury movements, one must look at the broader health of the network. A year after Promotion of bacteriaEthereum has achieved record low transaction costs and improved scalability through increased blob throughput.
The network is now more efficient than ever, but faces a unique set of challenges in 2026. Institutional interest is at an all-time high, driven by improved regulatory clarity in the US. These improvements support companies like BitMine, now listed on the New York Stock Exchange (NYSE), to aggressively expand their Ethereum treasury and pursue their 5% supply target.
Balancing growth and decentralization
The Ethereum Foundation is at a difficult crossroads. On the one hand, it must fund research that ensures this Ethereum It remains the most secure and scalable smart contract platform in the world. On the other hand, it must manage its treasury in a way that respects the decentralized spirit of its society.
The partnership with BitMine represents a new era of “institutional Ethereum,” where massive treasuries serve as the bedrock of the network’s staking power. While this provides stability and a consistent buyer for the organization’s operational needs, it also centralizes power in a way that co-founder Vitalik Buterin has previously warned about.
As we move into May 2026, the community’s call for transparency is likely to grow louder. It remains to be seen whether the Foundation will respond by providing a more detailed analysis of its “burn rate” or by returning to its cadastral goals. Currently, Ethereum’s “BitMine Era” has arrived, paved with billion-dollar rewards and multi-million-dollar OTC sales.
