BitMine to Halt ETH Buying After Hitting 5% Ownership Cap

BitMine Immersion Technologies, led by CEO Tom Lee, plans to stop adding to its Ethereum position once it reaches a self-imposed ceiling of 5% of total ETH supply, according to CoinDesk. The company currently holds 6,016,414 ETH, about 4.9% of Ethereum's 122.1 million circulating supply. It is roughly 88,586 ETH short of the 5% threshold, an amount valued at about $240 million at current prices. Lee reiterated the limit at the Token2049 conference, saying, "This is a hard cap. Our cumulative position will not exceed 5%." The move closes what BitMine describes as its 15-month "Alchemy of 5%" accumulation effort. Lee said the position was built during a period of market stress, noting that purchases were concentrated in the bear market. He added that the firm is no longer increasing exposure "before the 25x rally." With the buying phase ending, BitMine is pivoting to monetizing its existing holdings, primarily through staking. The firm has staked 5,067,309 ETH, around 84% of its reserves. Via its Made in America Validator Network (MAVAN), BitMine is earning a seven-day annualized yield of 2.63% and estimates annual staking income of roughly $363 million based on current holdings. The strategy also reduces the need for ongoing financing or equity issuance to expand its ETH position. Following the announcement, Ethereum fell about 5% to $2,585.94. The drop coincided with $216.56 million in ETH liquidations, with 97% attributed to long positions. CoinDesk noted upcoming potential catalysts including the Ethereum Glamsterdam upgrade and progress on the Hoodi testnet. The original report also carried a disclaimer that the views expressed reflect the author's assessment of current market conditions and that investors should conduct their own research before making investment decisions.