BitMine sets 5% Ether supply hard cap as accumulation target nears

• BitMine Immersion Technologies will not accumulate more than 5% of Ether's total supply.
• The company has accumulated approximately 6 million Ether, nearing the 5% supply cap.
• Chairman Tom Lee made the announcement at Token2049 in Singapore on Wednesday.
• BitMine's Ether accumulation occurred primarily during a crypto bear market.
• Stopping accumulation removes the need for BitMine to raise additional capital for Ether purchases.

BitMine Immersion Technologies has set a hard cap on its Ether holdings, limiting its accumulation to 5% of the cryptocurrency's total supply, according to Chairman Tom Lee. Lee announced the policy during a keynote address at Token2049 in Singapore on Wednesday.

Lee stated that BitMine is close to reaching this threshold, having accumulated approximately 6 million Ether, which represents about 4.9% of the current supply. He indicated that the company would need to acquire around 100,000 more Ether to hit the 5% mark, but emphasized that no further accumulation would occur beyond that point.

This decision marks a shift from Lee's previous stance, where he had left open the possibility of accumulating more than 5% of Ether's supply depending on Ethereum's adoption. In an August interview, he suggested the company might reconsider this limit in 2027.

Lee explained that BitMine acquired the majority of its Ether holdings during a crypto bear market, allowing the company to build its position at depressed prices. He also linked the 5% cap to BitMine's capital strategy, suggesting that stopping accumulation would eliminate the need to raise additional funds for further purchases and would allow the company to outperform Ether on the way up.

BitMine has previously tapped capital markets to finance its Ether treasury, including a $300 million perpetual preferred stock offering in June. The company also had a $4 billion buyback program for its common shares. Even after halting direct Ether purchases, BitMine could see its holdings increase through staking rewards, though Lee has stated that ETH earned from staking may be sold to maintain the 5% supply limit.