Tom Lee's BitMine pushes Ethereum into $8 billion staking backlog

A surge in staking activity from mega-ether holder BitMine Immersion (BMNR) is straining the Ethereum network, sending the wait time to become a validator to the longest since mid-2023.

There’s more than 2.55 million in ether ETH$2,939.25 – worth roughly $8.3 billion – currently waiting to be activated, translating into an estimated wait time of over 44 days before new validators can begin earning staking rewards.

That’s the biggest backlog since late July 2023, only a few months after Ethereum fully implemented its proof-of-stake mechanics and enabled withdrawals.

The Ethereum network uses validators to process transactions and secure the blockchain. But it limits the number of new validators who can enter each day to avoid sudden shocks to network stability. When too many people try to join, the overflow is put into a queue.

At the center of the current spike is BitMine, the Ethereum treasury firm helmed by Fundstrat’s Thomas Lee. The firm, which is sitting on over $13 billion worth of ETH, confirmed this week that it has already staked over 1.25 million tokens, more than a third of its holdings, clogging the entry for new validators.

With nearly 3 million more ETH still on its balance sheet without being put to use, the queue could grow even longer. Blockchain data shows that BitMine's been busy transferring hundreds of millions of dollars worth of ETH in the past couple of days, likely for staking purposes.

The current situation is a striking shift from just a few months ago. In September and October, the Ethereum network was clogged in the opposite direction, with thousands of validators trying to exit – in large part because of an infrastructure issue that forced institutional staking provider Kiln to reshuffle its validator network – pushing wait times to 46 days on the way out.

The entry backlog comes at a time when a fresh wave of institutional staking demand could be on the way.

ETF issuers and other large players are watching closely as regulators define legal boundaries for staking in the U.S. In December, asset management giant BlackRock filed for a staked ether ETF, following Grayscale's move to add staking to its ether-focused ETFs.

"The activation pressure is likely to persist," said Josh Deems, head of revenue at Figment, an institutional crypto staking provider. "Many approved ETPs [exchange-traded products] and treasuries are yet to fully activate staking, and these vehicles collectively hold roughly 10% of Ethereum’s circulating supply,"

The gridlock could also complicate asset management for these large players, leading to missing out on more than a month's worth of income from staking yields while waiting in line.

Read more: Staking goes mainstream: what 2026 could look like for ether investors