Why Did the Ethereum Foundation Sell Another 10,000 ETH? Attention on the Identity of the Counterparty

▲ Ethereum (ETH) ©

The Ethereum (ETH) Foundation has once again undertaken a large-scale sale to secure operating funds, but the identity of the counterparty in this transaction has been revealed, ironically instilling positive market sentiment regarding potential supply lock-up.

According to the cryptocurrency media outlet Bitcoinist on April 25 (local time), the Ethereum Foundation announced via social media platform X that it had signed an over-the-counter (OTC) agreement with Bitmain, a digital asset treasury (DAT, a cryptocurrency financial strategy company), to sell 10,000 ETH. The average purchase price for this transaction was $2,387, totaling approximately $24 million.

This large-scale sale comes just one month and ten days after the previous transfer of 5,000 ETH, worth approximately $10.21 million at the time, to Bitmain, led by Tom Lee. The Foundation explained that, similar to previous sales, the proceeds from this sale will be used for core operational activities such as protocol research and development, ecosystem advancement, and community grants. This is part of an ongoing financial management policy to maintain a consistent buffer of operating funds in fiat currency.

Some in the virtual asset community have expressed a somewhat critical view, suggesting that the Foundation should generate revenue through staking rather than selling coins on the market. However, interestingly, the Ethereum Foundation has consistently staked a portion of its holdings in recent months, and earlier this month, it transferred 45,000 ETH to the Beacon Deposit Contract, nearing its target of 70,000 ETH, drawing attention to this sale.

Industry experts analyze that the fact that Bitmain is the ultimate acquirer in this 10,000 ETH transaction can alleviate concerns about sell pressure in the open market. Bitmain, one of the largest holders of Ethereum, stockpiles assets from a long-term perspective, making it unlikely that the acquired volume will immediately flood the market. In fact, Bitmain aggressively purchased 101,627 ETH between April 13 and 19, now firmly holding 4,976,485 ETH, which accounts for 4.12% of the total supply.

Bitmain's ultimate goal is reportedly to hold 5% of the total supply, suggesting that their aggressive buying spree is unlikely to subside easily before reaching this target. Meanwhile, the current price of Ethereum is trading around $2,316, down 0.6% over the past 24 hours, and according to CoinGecko data, it has recorded a decline of approximately 5% over the last 7 days, continuing its consolidation.

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