BitMine Immersion Technologies Chairman Tom Lee took the stage at TOKEN2049 Singapore to announce a definitive cutoff: the company is capping its Ethereum holdings at a maximum of 5% of the total circulating supply. BitMine has accumulated roughly 6 million ETH so far, representing about 4.9% of the entire circulating supply, and now needs only 100,000 additional ETH to reach its final target.
According to on-chain analytics tracker Lookonchain, BitMine purchased 12,500 ETH worth $33.65 million via BitGo custody roughly five hours prior to Lee’s announcement. The multi-million-dollar transaction likely represents one of their final accumulation moves toward the 5% threshold.
“It is a hard cap. We will not accumulate more than 5%,” Lee told the TOKEN2049 audience. “We will not own more than 5% of Ethereum.”
Lee revealed that the bulk of their ETH buying spree was executed during the crypto bear market when prices were deeply suppressed. Those purchases, he argued, helped establish a price floor for ETH and prevented deeper declines caused by a lack of demand. “We did all this buying in a bear market. But now, we are done accumulating ahead of a 25-fold move,” he added.
Why Stop at 5 Percent
Establishing a 5% cap brings structural implications for the company’s balance sheet. BitMine will no longer need to raise additional capital to fund future ETH purchases, relieving the company of the burden of seeking fresh financing.
“So if we have a hard cap of 5%, that means we will outperform ETH when it moves up, right? Because you do not have to worry about us trying to raise capital. We are done,” Lee explained.
The final decision marks a clear strategic pivot from the company’s previous plans. In an August podcast interview with Bankless, Lee had indicated that the firm was open to accumulating beyond 5%, depending on the pace of Ethereum’s market adoption. At the time, he suggested the ownership ceiling might only be reviewed in 2027, rather than right now.
Strategy to Manage Staking Yields
Even though direct spot market purchases will soon halt, BitMine’s ETH reserves could still grow organically through staking. The company previously projected annual staking revenues of $334 million generated from its $15.8 billion crypto treasury.
To prevent holdings from swelling past the 5% threshold due to staking rewards, Lee stated that the company has the option to immediately sell newly received ETH earned as network rewards.
On the corporate side, BitMine had already restructured its capital structure before concluding its accumulation phase. In June, the company issued a $300 million perpetual preferred stock offering. It also executed a buyback of 16.1 million common shares under a broader $4 billion share repurchase program.
For retail market participants, the announcement at TOKEN2049 highlights a new phase of institutional involvement: capitalizing on bear market downturns to scoop up coins at steep discounts, establishing sensible ownership ceilings, and positioning to capture upside price momentum without further straining corporate cash flow.
Via Cointelegraph.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
