Ethereum Foundation Releases 5,000 ETH to BitMine, Threat of Centralization Looming?

Jakarta, Pintu News – In mid-March 2024, the crypto world was shocked by a major step taken by the Ethereum Foundation. The non-profit organization that is the backbone of the Ethereum (ETH) network development officially sold 5,000 ETH worth around $10,000,000 to BitMine through an over-the-counter (OTC) transaction.

This decision immediately sparked debate among the community, especially regarding its potential impact on decentralization and the future of the Ethereum (ETH) ecosystem.

Ethereum Foundation Sells 5,000 ETH, Fresh Funds for Operations

The Ethereum Foundation announced that it has completed the sale of 5,000 Ethereum (ETH) to BitMine at an average price of $2,042.96 per token. The proceeds will be used to support core operations, including research and protocol development. The move comes amid growing financial pressure, with the organization’s coffers running low. This large sale is in the spotlight because the Ethereum Foundation has previously been known to be very cautious in releasing its assets to the market.

This transaction was conducted OTC, so it did not directly affect the market price of Ethereum (ETH) significantly. However, the decision to choose BitMine as a transaction partner raises big questions among observers. BitMine itself is known as a company that has been very aggressive in accumulating Ethereum (ETH) over the past year. With this sale, the Ethereum Foundation now only has about 200,000 ETH in cash, worth approximately $424,000,000.

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BitMine gains dominance, targets 5% ETH supply

BitMine is now the largest corporate holder of Ethereum (ETH), holding over 4.47 million tokens worth approximately $9,070,000,000. The company, led by Tom Lee, has publicly stated its ambition to control 5% of the total circulating Ethereum (ETH) supply.

This aggressive accumulation strategy has raised concerns about the centralization of power on the Ethereum (ETH) network. In a proof-of-stake system, token ownership is directly proportional to voting rights and influence in network consensus.

The direct sale from the Ethereum Foundation to BitMine is considered contrary to the principle of decentralization that has been upheld. Many consider that the concentration of assets in one corporate entity can threaten the security and integrity of the network.

If BitMine manages to reach its 5% supply target, the company will have a huge influence on decision-making in the Ethereum (ETH) ecosystem. This could potentially open the door to monopolistic practices and network manipulation in the future.

Also read: Cheeky Crypto Analyst: 10,000 Ripple (XRP) No Longer Enough for Financial Freedom in 2026?

Ethereum Foundation’s New Strategy: Staking and Governance Manifesto

In addition to selling assets, the Ethereum Foundation has also started to change its treasury management strategy. Recently, the organization started staking 70,000 Ethereum (ETH) for yield.

The staking proceeds will be allocated for ecosystem development and community grants. This move marks a major change from the old policy of letting assets sit unutilized, in order to maintain neutrality in network consensus.

Not only that, the Ethereum Foundation also released a new governance manifesto that affirms commitment to decentralization and open-source principles. In the document, the organization expressly rejects protocols that are deemed to support centralization or excessive oversight.

This policy change coincides with a change in leadership, with Tomasz Stańczak stepping down as Co-Executive Director and being replaced temporarily by Bastian Aue. All of these steps are being taken to ensure Ethereum (ETH) remains an open and inclusive network amidst new challenges.

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Reference

• BeInCrypto. Ethereum Foundation Sells 5,000 ETH to Bitmine. Accessed on March 16, 2026
• Featured Image: U Today