TL;DR
- BitMine set a maximum cap of 5% of Ethereum’s supply. Tom Lee confirmed the company will not accumulate beyond that limit.
- The firm accumulated close to 6 million ETH, equivalent to 4.9% of the supply, and needs approximately 100,000 more ETH to reach the target.
- Lee indicated that halting accumulation eliminates the need to raise additional capital, which would allow the stock to outperform ETH on the upside.
Tom Lee, chairman of BitMine Immersion Technologies, announced during his presentation at Token2049 in Singapore that the company has established a hard cap of 5% of Ethereum’s supply, turning what had been an accumulation target into a definitive and immovable limit.
Lee revealed that BitMine is very close to that threshold after accumulating approximately 6 million ETH, equivalent to 4.9% of the circulating supply. To reach the exact target, the company needs to add around 100,000 additional ETH. “That is a hard cap. We are not going to accumulate beyond 5%,” Lee stated. “We are not going to own more than 5% of Ethereum.”
BitMine Will Put an End to Accumulation
The current stance contrasts with previous statements. In an interview with Bankless in August, Lee had left open the possibility of exceeding that threshold depending on the level of adoption of the Ethereum network, with a potential review in 2027. That window was closed with the announcement in Singapore.
Lee also highlighted the context in which the position was built. According to the executive, the company made most of its purchases during what he described as a bear market, taking advantage of depressed prices to accumulate at a low cost. “We made all these purchases in a bear market,” he said. “Now we are ready. We are done accumulating ahead of a 25x move.”
Staking Rewards Could Be Sold
The cap also has direct implications for the capital strategy. By halting accumulation, BitMine eliminates the need to raise additional funds to continue buying ETH, which Lee presented as a competitive advantage for shareholders. “If we have a 5% cap, it means we are going to outperform ETH on the way up,” he argued.
To finance its treasury, the company launched in June a perpetual preferred stock offering for $300 million and executed buybacks of 16.1 million ordinary shares under its $4 billion buyback program. Even after ceasing direct purchases, staking could increase its holdings. Lee anticipated that the company could sell the ETH generated through staking to prevent its stake from exceeding 5%.
