BitMine Immersion Technologies will stop buying Ether once its holdings hit 5% of the cryptocurrency's supply, Chairman Tom Lee said. The firm is already close, holding roughly 6 million ETH, and needs about 100,000 ETH more to reach the ceiling.
BitMine Immersion Technologies will cap its Ether holdings at 5% of the cryptocurrency's supply, Chairman Tom Lee said. Speaking at a Token2049 keynote in Singapore on Wednesday, Lee said the company is nearing that threshold after accumulating roughly 6 million Ether, about 4.9% of the supply. He said BitMine needs about 100,000 ETH more to reach its target.
According to Cointelegraph: "That's a hard cap. We're not gonna be accumulating past 5%." Lee had previously left open the possibility of accumulating more than 5% depending on Ethereum adoption, saying in an August interview with Bankless that the company may revisit that possibility in 2027.
Lee said BitMine built most of its Ether position during a crypto bear market, buying while prices were depressed. He tied the 5% hard cap to the firm's capital strategy, saying stopping accumulation removes the need to raise further funds to keep buying Ether.
BitMine has tapped capital markets to build its Ether treasury. In June, the company launched a $300 million perpetual preferred stock offering. By early August, it had repurchased 16.1 million common shares under its $4 billion buyback program.
Even after Ether purchases stop, staking could still add to BitMine's holdings. Lee previously said the company could sell ETH earned through staking to keep its share of supply from rising above 5%.
Source: Cointelegraph
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