Key highlights:
- BitMine holds 4.9% of ETH’s total supply, and will stop at a 5% “hard cap.”
- It needs about 100,000 more ETH to reach the limit
- Tom Lee said the company is “done stacking” and will no longer need to raise money to buy the coin
Ethereum treasury company BitMine Immersion Technologies will limit its ETH holdings to 5% of the coin’s total supply, according to Chairman Tom Lee.
Why BitMine is stopping its Ethereum purchases
Lee said the company is close to the limit as it holds about 6 million ETH (4.9% of the total supply), and needs about 100,000 more to hit 5%.
“That’s a hard cap. We’re not gonna be accumulating past 5%. We’re not gonna own more than 5% of Ethereum. We did all this buying in a bear market. We protected the downside for ETH because we were buying. But now, we’re done stacking in front of a 25X move.”
He also linked the cap to how the company raises money. Once the firm stops buying, it would also halt raising new funds to buy ETH.
“So if we have a 5% hard cap, that means we’re gonna outperform ETH on the way up, right?” Lee said. “‘Cause you don’t have to worry about us trying to raise capital. We’re done.”
The decision changes Lee’s earlier OPINION. He had left open the chance that BitMine could hold more than 5% if Ethereum adoption grew.
BMNR continues buying spree
BitMine shared on Monday that it holds about 6,016,414 ETH after buying 15,112 tokens in the past week. At the current price of $2,582 per coin, the holdings are worth about $15.5 billion.
On-chain tracker Lookonchain also reported that BitMine bought another 12,500 ETH, worth about $33.65 million, through BitGo.
The company said it has bought ETH every week since it began its treasury plan on June 30, 2025. The new buy comes after its last reported purchase of 17,632 ETH. The 4.9% share is measured against a supply of 122.1 million tokens.
Notably, Most of its Ethereum coins are staked. About 5 million ETH tokens were staked through BitMine’s MAVAN platform and its staking partners. That is 84% of its balance. The company projected a yearly staking revenue of $363 million, based on the seven-day annualized yield of 2.63%.
Staking could still raise the company’s ETH total after direct purchases stop. Lee said BitMine could also sell coins it earns from staking so that its share of supply does not move above 5%.
Interestingly, the company also holds assets other than ETH. It reported 214 Bitcoin, a $180 million stake in Beast Industries, a $117 million stake in Eightco Holdings, and $643 million in cash and marketable securities. Its crypto, cash, and other holdings totaled $17.4 billion as of October 4.
BitMine has used capital markets to fund its ETH purchases. In June, it launched a $300 million perpetual preferred stock offering. By early August, it had repurchased 16.1 million common shares under a $4 billion buyback program.
Source:: BitMine Sets 5% ETH Supply Hard Cap as Buying Spree Nears End