On March 14, the Ethereum Foundation, the nonprofit that supports development of the Ethereum blockchain, announced it had completed an over-the-counter sale of 5,000 ETH to BitMine.
The deal was executed at an average price of $2,042.96 per ETH, totaling approximately $10 million. According to the foundation, the funds will support its core activities, including protocol research and ongoing development.
The organization has faced criticism in the past regarding the timing and impact of its ETH sales, and the selection of BitMine as the buyer has again drawn attention.
BitMine Expands Its Ethereum Holdings
BitMine is currently the largest known corporate holder of Ethereum, reportedly controlling over 4.47 million ETH, valued at roughly $9 billion. The company, led by Tom Lee, has been rapidly accumulating cryptocurrency and has publicly stated its goal of eventually controlling around 5% of Ethereum’s circulating supply.
Because Ethereum operates on a proof-of-stake model, the amount of ETH held by an entity can influence its staking power and role in network validation. For some observers, selling additional ETH to a single large corporate holder raises concerns about asset concentration and its potential effect on decentralization.
Foundation Treasury Strategy Is Changing
After this transaction, the Ethereum Foundation’s treasury now holds a little over 200,000 ETH, worth approximately $424 million at current prices.
Facing concerns about how long its reserves could sustain operations, the foundation has recently started adjusting its financial strategy. In the past, it kept most of its ETH holdings inactive to avoid affecting network dynamics.
However, that approach is evolving. Earlier this year, the foundation staked about 70,000 ETH to generate yield and to channel staking rewards into ecosystem funding, grants, and development initiatives.
New Governance Direction and Leadership Changes
Alongside these financial moves, the organization has introduced a new governance framework emphasizing decentralization and open-source principles. The policy states that the foundation intends to distance itself from projects considered overly centralized or supportive of surveillance-oriented infrastructure.
These developments have also coincided with changes in leadership. Earlier in the month, co-executive director Tomasz Stańczak stepped down, and Bastian Aue was appointed as the interim director.
