Bitmine Immersion Technologies, a digital asset company specializing in blockchain infrastructure and cryptocurrency accumulation, is preparing to suspend its aggressive Ethereum purchasing strategy. Chairman Tom Lee announced at the Token2049 conference in Singapore that Bitmine will stop buying Ethereum once its holdings reach 5% of the total circulating supply.
5% hard cap in focus
Bitmine currently holds approximately 6,016,414 ETH, which amounts to about 4.9% of the circulating supply. Lee explained that the company is now only 100,000 ETH away from its self-imposed cap. Based on last week’s accumulation rate, Bitmine is expected to reach this threshold in about six or seven weeks.
“We only need to get another 100,000 ETH to get to 5%,” Lee stated during his presentation. He emphasized that 5% is Bitmine’s “hard cap,” calling it the point that best serves shareholder interests.
Bitmine began its systematic Ethereum purchases in June 2025 as part of a treasury diversification strategy designed to provide consistent demand support for the asset. Since then, the firm has purchased ETH every week, which has helped stabilize the token’s price during turbulent market periods.
Impact on the Ethereum market
The decision to halt Ethereum accumulation is significant for investors and traders as Bitmine’s regular purchases have represented a reliable source of demand over the past year. Once the 5% cap is reached, the market will lose a steadfast buyer that has routinely absorbed large quantities of ETH, potentially affecting price dynamics and liquidity going forward.
Lee also indicated that if staking rewards push Bitmine’s share above the 5% threshold, the company may consider selling excess Ethereum to maintain its cap. This move would introduce additional supply to the market, adding another factor for market participants to monitor.
| Metric | Current Value | Target/Threshold |
|---|---|---|
| ETH Holdings | 6,016,414 | 5% of supply (~6.12 million ETH) |
| Share of Supply | 4.9% | 5% (hard cap) |
| Estimated Weeks Remaining | 6-7 weeks | Until cap reached |
| Unrealized Losses | $4.5 billion | N/A |
Unrealized losses and compressed timeline
Despite the achievement of approaching its 5% target, Bitmine’s Ethereum holdings carry significant unrealized losses, estimated at $4.5 billion, as much of the accumulation occurred during last year’s higher prices in a bull market. With Ethereum trading near $2,570 on Wednesday, the company remains underwater on its position.
Lee underlined the speed of Bitmine’s accomplishment, stating the original goal was to hit the 5% mark over five years, but the company reached it in just over one year.
“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,” Lee remarked at Token2049.
As Bitmine approaches its hard cap, the company’s sustained market support and heavy buying phase are set to conclude. The wider market may need to adjust to the absence of one of its most consistent institutional Ethereum buyers.
Ethereum’s price dropped 5.5% on Wednesday, significantly underperforming other major cryptocurrencies during Asian trading hours—a decline that coincided with Lee’s remarks at the conference.
Mini dictionary: Bitmine Immersion Technologies, a blockchain infrastructure company, has focused on large-scale digital asset acquisition and staking strategies, positioning itself as a significant institutional force in the Ethereum market over the past year.
