Bitmine’s ETH Buying Spree Nears End With Holdings at 4.9% of Supply

BitMine is nearing its 5% ETH supply limit, with Tom Lee planning to halt purchases and rely on staking revenue.

BitMine is approaching its Ethereum accumulation limit after building a treasury worth billions of dollars. Chairman Tom Lee confirmed plans to stop buying ETH once holdings reach 5% of circulating supply. Recent purchases have brought its share to approximately 4.9%, leaving little room for further accumulation. Meanwhile, staking rewards could continue generating income without requiring additional ETH purchases.

BitMine Plans to Stop ETH Purchases at 5% Supply

Speaking at Token2049 in Singapore, Lee confirmed that BitMine would stop accumulating Ethereum at its 5% supply target. BitMine recently purchased approximately 15,112 ETH, raising total holdings to 6,016,414 ETH. Its treasury now represents about 4.9% of Ethereum’s estimated 122.1 million circulating tokens.

Lee described the target as a firm limit under the company’s “Alchemy of 5%” strategy. “We thought this would take five years,” Lee said. “It took us a little over a year.”

Around 100,000 ETH remains before BitMine reaches its target. At its recent purchasing pace, accumulation could end within six to seven weeks. Lee also suggested selling staking rewards to prevent holdings from exceeding 5% of circulating supply.

Previously, Lee had suggested BitMine might consider exceeding 5% as corporate demand for Ethereum grows. During an August Bankless interview, he said holding more could make sense if businesses increasingly adopted ETH as a long-term asset. He also indicated that BitMine could reconsider its position in 2027.

How Staking Revenue Could Support BitMine’s Treasury

Ending ETH purchases could reduce BitMine’s reliance on capital markets to finance further accumulation. Lee believes limiting additional purchases could help BitMine shares follow Ethereum’s price movements more closely.

Meanwhile, staking remains an important source of revenue for the company. BitMine currently stakes approximately 5,067,309 ETH through its MAVAN network. That represents around 84% of its Ethereum treasury, valued at approximately $13.8 billion.

At a seven-day yield of 2.63%, staking could generate an estimated $363 million annually. Such revenue could cover existing financial obligations without forcing BitMine to sell its principal ETH holdings.

In August, Lee estimated annual staking revenue at $300 million. He compared that figure with $30 million to $35 million in annual preferred stock dividends. “Instead of us selling Ethereum, we’re more likely trying to find ways to monetize our Ethereum holdings,” Lee said.

Despite its large treasury, BitMine faces substantial unrealized losses following Ethereum’s price decline. Earlier purchases occurred at higher market prices, leaving approximately $4.5 billion in paper losses. ETH traded near $2,567 on Wednesday, following a decline of almost 6%.