The Ethereum Foundation (EF) has sold 5,000 ETH to BitMine Immersion Technologies in a $10.2 million over-the-counter (OTC) transaction, marking the second time the organization has transferred part of its treasury directly to a publicly traded Ethereum treasury company.
According to a post published Saturday on X, the ETH was sold at an average price of $2,042.96 per coin, with proceeds allocated toward funding the foundation’s ongoing operational and development initiatives.
While news of a foundation selling its native token can sometimes trigger concerns among investors, market observers say the structure of this deal – combined with BitMine’s aggressive accumulation strategy – may actually be a bullish signal for Ethereum’s long-term market structure.
The private transaction moves supply from Ethereum’s core development organization to one of the largest institutional ETH holders in the world, all while avoiding direct market selling pressure.
The company has steadily accumulated Ether since mid-2025
Ethereum Foundation Uses OTC Sales to Fund Development
The Ethereum Foundation confirmed that the ETH transfer will originate from one of its Safe multisignature treasury wallets, ensuring transparency through on-chain verification.
“This sale funds the EF’s core operations & activities, including protocol R&D, ecosystem development, community grant funding and more,” the organization said.
The foundation is responsible for supporting Ethereum’s development roadmap, funding independent research teams, and providing grants to developers building on the network.
Key initiatives funded through its treasury include:
- Core protocol research and development
- Developer tools and infrastructure
- Ecosystem expansion programs
- Community grants and education initiatives
To maintain sustainable funding for these activities, the Ethereum Foundation periodically converts a portion of its ETH holdings into operational capital.
Rather than selling assets through public exchanges, however, the organization increasingly relies on over-the-counter transactions with institutional buyers.
OTC deals allow large blocks of crypto to change hands privately, preventing sudden price volatility that might occur if the same amount were sold on exchanges.
Part of Ethereum Foundation’s Treasury Management Strategy
The sale also fits into a broader treasury management framework introduced by the Ethereum Foundation in June 2025.
Under that policy, the foundation aims to maintain a balanced financial structure that ensures long-term stability regardless of market cycles.
The framework includes several guidelines:
- Annual spending equal to around 15% of total treasury value
- Maintaining a multi-year operating runway
- Gradually converting ETH into fiat or fiat-like assets to cover operational costs
This approach allows the organization to fund Ethereum’s development even during prolonged market downturns, without needing to liquidate large amounts of ETH during unfavorable market conditions.
The latest transaction represents only a small portion of the foundation’s total holdings but ensures continued funding for the network’s technical progress.
BitMine Expands the Largest Corporate ETH Treasury
The buyer in the deal, BitMine Immersion Technologies, has rapidly become one of the most significant institutional players in the Ethereum ecosystem.
The publicly traded company – listed on the NYSE American under the ticker BMNR – is chaired by Fundstrat co-founder Tom Lee, a long-time crypto market analyst.
BitMine has been aggressively accumulating ETH since mid-2025 as part of a strategy similar to the Bitcoin treasury approach pioneered by Strategy (formerly MicroStrategy).
As of last week, the firm reported holding:
- 4,534,563 ETH
- Approximately 195 BTC
- Over $1 billion in cash reserves
At recent market prices, BitMine’s Ethereum treasury is valued at roughly $9.4 billion, making it the largest publicly traded ETH treasury company in the world.
The company also recently disclosed that it added more than 60,000 ETH in a single week, demonstrating continued confidence in Ethereum’s long-term potential despite market volatility.
BitMine Expands the Largest Corporate ETH Treasury
Ethereum’s Price Recovery After a Steep Correction
The transaction comes during a period of gradual recovery for Ethereum after a difficult stretch in the broader crypto market.
ETH reached a peak of $4,946 in August 2025, but the asset has since experienced a significant correction, falling roughly 58% from its all-time high during the recent downturn.
Recent market data shows Ethereum trading around $2,244, reflecting a modest recovery from the lows earlier in the year.
Over the past week, ETH has climbed approximately 5%, with a 9% gain over the last month, according to CoinGecko.
The chart below shows Ethereum’s recent price action following its sharp decline earlier in the year.
Despite the recent rebound, sentiment among some traders remains cautious.
Users on prediction market platform Myriad currently estimate a 63% probability that Ethereum could fall to $1,500 before reaching $3,000, reflecting lingering uncertainty in the market.
Ethereum (ETH) 24H price chart on 16/03/2026 (Source: CoinMarketCap)
BitMine’s Massive Paper Loss and Continued Conviction
Interestingly, BitMine’s aggressive accumulation strategy means the company is currently sitting on a substantial unrealized loss.
Based on filings with the U.S. Securities and Exchange Commission and estimates of its purchase prices, the firm may be down roughly $7.5 billion on paper due to Ethereum’s decline since last year’s peak.
Yet BitMine has continued purchasing ETH throughout the downturn.
Tom Lee has remained publicly optimistic about the asset’s long-term outlook.
“Ethereum prices showed resilience this week, in the face of rising war concerns and surging oil prices,” Lee said in a statement accompanying the company’s latest treasury update.
“We continue to believe that crypto prices are in the late or final stages of the mini crypto winter.”
The continued buying suggests BitMine views the current market environment as a long-term accumulation opportunity rather than a reason to reduce exposure.
Second Corporate OTC Deal by the Ethereum Foundation
The latest transaction also marks the second time the Ethereum Foundation has sold ETH directly to a corporate treasury buyer.
In July 2025, the organization completed a larger OTC sale of 10,000 ETH to SharpLink Gaming, valued at approximately $25.7 million at the time.
SharpLink remains the second-largest corporate holder of Ethereum, with roughly $1.75 billion worth of ETH on its balance sheet.
These deals illustrate a broader trend within the crypto ecosystem: the rise of corporate Ethereum treasuries.
Just as several companies accumulated Bitcoin as a strategic reserve asset during the previous cycle, Ethereum is now increasingly being treated as a long-term institutional treasury asset.
Why the Transaction Could Be Bullish for Ethereum
Although token sales by major organizations can sometimes spark fears of selling pressure, several factors suggest the latest Ethereum Foundation transaction could actually support the asset’s long-term outlook.
1. No Market Sell Pressure
Because the transaction was conducted OTC, the ETH never entered exchange order books. This prevents the sudden supply shocks that often occur when large holders sell assets publicly.
2. Transfer to Long-Term Institutional Holders
BitMine’s treasury strategy indicates the ETH will likely remain locked in corporate reserves rather than returning to circulating supply. This effectively removes liquidity from the market.
3. Funding Ethereum’s Development
The proceeds from the sale will directly fund protocol upgrades, developer grants, and research initiatives, ensuring the network continues to evolve.
4. Growing Institutional Demand
The willingness of publicly traded companies to accumulate large ETH positions signals increasing confidence in Ethereum’s long-term role in the digital economy.
A Maturing Ethereum Ecosystem
The latest sale reflects a broader evolution within Ethereum’s economic ecosystem.
Instead of circulating primarily among retail traders and decentralized finance users, increasing portions of ETH supply are now being absorbed by institutional treasuries, corporate balance sheets, and staking infrastructure.
At the same time, the Ethereum Foundation is implementing more structured treasury management policies to ensure the network’s development remains financially sustainable.
Together, these trends suggest Ethereum is gradually entering a more mature phase of adoption, where long-term institutional capital plays a larger role in shaping the market.
If the current trajectory continues, analysts say the migration of ETH supply into long-term corporate treasuries could tighten market liquidity over time – potentially creating stronger foundations for the asset’s next major cycle.
