- The Ethereum Foundation sold 10K ETH OTC (~$23M) in three recent sessions to BitMine, totaling $47M last week via Safe multisig for R&D and donations.
- BitMine now has a 4.2% ETH supply, staking 4.19M ETH ($9.48B, 82% of assets) after adding 162K ETH ($366M); eyes 5% “missing the floor.”
- EF stable 17K ETH, breaking the 70K target in the middle of the trade; The backlash affects the heating system even though the $10M Q1 ESP costs ZK, security, and coverage.
The Ethereum ecosystem is experiencing a short-term change, as the integration of institutions is facing a certain community crisis. Since May 4, 2026, the Ethereum Foundation (EF) has been given dubious reviews after an over-the-counter (OTC) transaction that saw tens of millions of dollars in $ETH go into the hands of Bitmine Immersion Technologies.
The Foundation insists that these activities are nothing more than temporary financial management designed to fund R&D and environmental resources. But it’s the size and scale of the sale that has sparked controversy on social media. The question that has arisen as a result of the remaining debate is how, in the developed world, can the CEO of a non-profit network manage his wealth without offending the community?
Purchase of BitMine for $47 Million
The most recent headline on Ethereum’s 2026 economy took place last week. According to what the government said from Ethereum Foundationthe organization completed the sale of 10,000 ETH at a price of $2,292.15 via OTC. The deal was confirmed by BitMine, led by Wall Street veteran and Fundstrat founder Tom Lee.
Information on the chain and official statements indicate that this was the third such action in a very short window. In just seven days, the Ethereum Foundation has dropped nearly $47 Millions of ETH to BitMine. The sale was made through a Multisig safe (0x9fC3dc011b461664c835F2527fffb1169b3C213e), a move that the Foundation describes as necessary to fund “major projects, protocol research, and community funding.”
However, the rapid succession of these sales has raised concerns about infrastructure consideration risk. By relying on a single buyer over and over again like BitMine, the Foundation can create trust that the community fears could turn into debt. As one critic on X said, “What if BitMine stops buying? What does $47M in 7 days mean for the real base they burn every month?”
BitMine’s Aggressive $9.5 Billion Staking Strategy
When a The Ethereum Foundation is sellingTom Lee’s BitMine is piling up aggressively and rising. Early in the morning on May 4, 2026, BitMine says he also invested 162,088 ETHabout $366 million.
BitMine’s total ETH at stake now represents 4,194,029 ETH, worth approximately $9.48 billion. These numbers represent approximately 82.59% of the company’s total assets. BitMine has quickly risen to become one of the leading organizations in the Ethereum staking landscape, with all of its funds nearly gone. 4.2% of the total ETH supply.
Tom Lee, the Chairman of BitMine, has been talking about his vision for 2026. Although the “mini crypto cold” began with a major recovery in October 2025, Lee confirms that Ethereum is “a permanent part of Wall Street.” BitMine’s goal seems to be acquisition 5% of the total amount of ETHan event that would propel the company into one of the most prominent areas in network security.
Breaking the 70,000 ETH Staking Target
Perhaps the most shocking development for observers is the Ethereum Foundation’s recent decision to withdraw part of its financial system. In June 2025, Maziko announced a change in the use of its resources, and established a large financial sector. about 70,000 deposited ETH.
However, last week, the Foundation 17,035 unlimited ETHbreaking its stated purpose. This move comes at a time when network traffic is at around 30%. The decision to move away from what they want to sell and sell millions to their partners has created a “glaring gap” that the community wants to fill.
Market researchers suggest that volatility can be a response to current needs or a repositioning of assets after a successful performance. Paddition ectra in May 2025, which led to the successful implementation of the certification and the best upgrade of the approved (EIP-7251). Regardless of technical opinions, the appearance of “sales and volatility” has caused public skepticism.
Community Backlash
The Ethereum community has never been shy about voicing their concerns, and the recent $47 million sale has sparked an outcry. One comment that many people shared on X captured his sentiments best:
The frustration stems from the lack of details regarding the Foundation’s operating costs. Although EF publishes annual reports, the speed at which these millions are being chased reflects a monthly rate that some find excessive for a non-profit organization.
In his defense, the Foundation Q1 2026 Ecosystem Support Program (ESP) report. showing that they distributed approx $10 million in the first three months of the year alone. These funds were directed to the most affected areas such as:
- toZero-Knowledge Infrastructure: Validation of zkVMs and GPU acceleration.
- toSecurity Protocol: Poseidon cryptographic analysis and security audits.
- toWorldwide Reach: Development events in Seoul, Hong Kong, and Buenos Aires.
Despite this revelation, the “cash vs crypto” debate remains. If the Ethereum Foundation believes that $ETH is the future of the economy, critics argue that the majority of contributors should be willing to accept the token as compensation, thereby reducing the need for a large market to lose OTC trading.
Ethereum Post-Pectra and Beyond
To understand the health of the network, one must look at the health of the network. A year later Change of PectraEthereum has achieved lower costs and improved scalability through increased blob throughput.
The network is now more effective than ever, but it faces unique challenges in 2026. The interest of organizations is very high, led by paragraph of Clarity Act at the beginning of 2026, which provided the guarantee of control expected by Wall Street. The change in management is to register on the New York Stock Exchange (NYSE) with a strong performance of 5%.
Reconciling Growth and Decentralization
The Ethereum Foundation is in trouble. On the other hand, it must pay for research that proves it Ethereum it is still the world’s most secure and scalable platform for smart contracts. On the other hand, it must manage its resources in a way that respects the culture of its community.
The partnership with BitMine represents a new era of “Institutional Ethereum,” where large financial institutions serve as the backbone of the network’s power. While this provides stability and a stable buyer for the Foundation’s operational needs, it also puts power in the middle of the process that co-founder Vitalik Buterin has previously warned against.
As we move into May 2026, the community’s call for transparency should grow stronger. Whether the Foundation responds by providing details of its “burning” or reverts to its remaining goals remains to be seen. Currently, Ethereum’s “BitMine Era” is here, with multi-billion dollar prizes and multi-million OTC trades.
