BitMine to halt Ethereum purchases at 5% supply cap

BitMine Immersion Technologies has announced a hard cap on its Ethereum (ETH) accumulation strategy. Speaking at the Token2049 conference in Singapore, Chairman Tom Lee confirmed the company will cease purchasing ETH once its holdings reach 5% of the total circulating supply.

Currently, BitMine holds approximately 6.016 million ETH, representing about 4.9% of the total supply. The company requires roughly 100,000 additional ETH to reach its target. Lee noted that the accumulation process, which began in mid-2025, reached this threshold much faster than the five-year timeline originally anticipated.

Following the conclusion of the buying phase, BitMine plans to pivot toward monetizing its existing treasury through staking. The company has already placed over 5 million ETH into staking programs, projecting annual revenues of approximately $363 million. This shift is intended to reduce the need for further capital raises or equity issuance.

Market reaction to the announcement included a decline in Ethereum's price of nearly 5% and a drop in BitMine's stock (BMNR) amid broader cryptocurrency market volatility.