Why did the Ethereum Foundation sell another 10,000 ETH? Eyes on the identity of the counterparty

▲ Ethereum (ETH) ©

The Ethereum (ETH) Foundation has once again made a large-scale sale to secure operating funds, but the identity of the counterparty in this transaction has been revealed, ironically fostering positive expectations of quantity lock-up in the market.

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

This large-scale sale occurred just one month and ten days after Bitmain, led by Tom Lee, acquired 5,000 ETH, valued at approximately $10.21 million at the time. The Foundation explained that, similar to previous sales, the proceeds from this sale would 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 based on 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 steadily 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, before carrying out this sale, drawing attention.

Industry experts analyze that the fact that Bitmain is the ultimate acquirer of this 10,000 ETH transaction can alleviate concerns about selling 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 quantity will immediately flood the market. In fact, Bitmain aggressively purchased 101,627 ETH between April 13 and 19, firmly holding 4,976,485 ETH, which accounts for 4.12% of the current total supply.

Bitmain's ultimate goal is known to be holding 5% of the total supply, so its aggressive buying spree is not expected to subside easily before reaching that target. Meanwhile, the current price of Ethereum has fallen by 0.6% over the past 24 hours, trading around $2,316, and according to CoinGecko data, it has recorded a decline of approximately 5% over the past 7 days, continuing its consolidation.

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