Summary
- Tom Lee, chairman of Bitmine, announced at Token2049 that the company will stop acquiring Ethereum once it reaches 5% of the circulating supply.
- Currently, Bitmine owns 6,016,414 ETH, which is about 4.9% of the total supply, and has been purchasing ETH weekly since June 2025, creating a consistent demand that will soon diminish.
- The firm is facing approximately $4.5 billion in unrealized losses due to having acquired most of its holdings at elevated prices during the previous bull market.
Bitmine Immersion Technologies is preparing to scale back its operations. At the Token2049 conference in Singapore, chairman Tom Lee revealed that the company will cease its Ethereum purchases once its holdings reach 5% of the token's circulating supply, marking a significant change in one of the market’s consistent sources of demand.
Lee indicated that Bitmine is roughly 100,000 ETH away from this limit and, based on its recent buying pace, it will take around six to seven weeks before the company stops acquiring more Ethereum.
Myriad: Predict Ethereum's next move.Lee expressed surprise at the speed of their accumulation, stating, "We thought this would take five years. It took us a little over a year. More importantly, we did this all in the middle of a bear market. Now we’re going to stop."
According to its latest filings, Bitmine is the largest Ethereum treasury globally, holding 6,016,414 ETH, which corresponds to approximately 4.9% of the total supply. The company added around $41 million in ETH just last week as it approached its goal known as the "Alchemy of 5%." (It should be noted that Tom Lee is among several investors in Dastan, the parent company of Decrypt.)
🚨BREAKING: Tom Lee states that Bitmine will "STOP" purchasing ETH at a 5% "hard cap."
"We only need to acquire another 100,000 ETH to reach 5%," Lee announced during his speech at Token2049.
Lee referred to the 5% limit as Bitmine's “hard cap,” designed to enhance shareholder value. pic.twitter.com/mm0WYnv4Z0
— Coin Bureau (@coinbureau) October 7, 2026
Since launching its treasury strategy in June 2025, Bitmine has consistently purchased Ethereum each week, contributing to a steady demand that has supported the token through a volatile period.
This impending halt is noteworthy for the wider market, as Bitmine's routine acquisitions have been a key source of demand. The cessation of its buying will eliminate a consistent buyer that has absorbed a significant amount of ETH over the past year.
Lee has hinted that the company might even consider selling Ethereum obtained through staking to ensure its holdings do not surpass the 5% cap.
As of now, Bitmine's situation is challenging, with its portfolio reflecting approximately $4.5 billion in unrealized losses, owing to most acquisitions being made at higher price points during the prior bull market, while Ethereum is trading around $2,570 as of Wednesday.
Ethereum has dropped by 5.5% today, experiencing greater losses than many other major cryptocurrencies, particularly during trading hours in Asia, which coincided with Lee's comments.
Nevertheless, Lee views the achievement as a point of pride, having condensed a five-year plan into just over a year. Once the 5% limit is reached, Bitmine's significant buying activity, along with the demand it has created, will conclude.