BitMine to Pause ETH Buying as It Nears a 5% Supply Cap

BitMine Immersion Technologies said it is preparing to stop purchasing Ethereum once it reaches an internal ceiling of 5% of ETH's total supply, marking the end of its 15-month accumulation drive. At Token2049, Chairman Tom Lee said the company will not take its holdings above the 5% threshold. BitMine currently holds 6,016,414 ETH, about 4.9% of Ethereum's circulating supply of 122.1 million ETH. It would need another 88,586 ETH to hit the cap, valued at roughly $240 million. BitMine estimates its corporate assets at about $17.4 billion, including its ETH treasury, $643 million in cash, and equity stakes in Beast Industries and Eightco Holdings. Lee said the company built the position during a weak market, arguing that the buying supported ETH on the downside. With the accumulation phase now winding down, BitMine plans to pivot from adding to its treasury to generating yield on existing holdings. The company has already staked 5,067,309 ETH, around 84% of its treasury. Through its Made in America Validator Network (MAVAN), BitMine reported a 7-day annualized yield of 2.63% and projects about $363 million in annual staking revenue at current levels. Management said the shift should also lessen the need to raise additional capital or issue equity to keep expanding ETH exposure. Ethereum dropped about 5% to $2,585.94 after the update. The move coincided with $216.56 million in ETH liquidations, with long positions accounting for 97% of the total. Market participants are now watching progress toward Ethereum's Glamsterdam upgrade and the Hoodi testnet as the next potential catalysts.