BitMine Immersion Technologies has committed to a hard cap on its Ether holdings at 5% of the cryptocurrency's total supply, according to Chairman Tom Lee. Speaking at Token2049 in Singapore on Wednesday, Lee stated the company has accumulated roughly 6 million Ether, equivalent to approximately 4.9% of supply, and needs about 100,000 ETH more to reach its stated target.
"That's a hard cap. We're not gonna be accumulating past 5%," Lee said during the keynote address. "We're not gonna own more than 5% of Ethereum."
This represents a shift from Lee's previous stance. In an August interview, he had indicated the company might revisit the possibility of accumulating beyond 5% depending on Ethereum adoption, with 2027 mentioned as a potential review date.
Accumulation Strategy and Capital Implications
Lee attributed BitMine's ability to build its Ether position to purchases made during depressed market conditions. "We did all this buying in a bear market," he said, noting that the company's buying activity provided downside protection for ETH during that period.
The hard cap also carries implications for BitMine's capital strategy. By ceasing accumulation, the company eliminates the need to raise additional funds for further Ether purchases. "So if we have a 5% hard cap, that means we're gonna outperform ETH on the way up, right? 'Cause you don't have to worry about us trying to raise capital. We're done," Lee stated.
Funding and Future Staking
BitMine has utilized capital markets to build its Ether treasury. In June, the company launched a $300 million perpetual preferred stock offering. By early August, BitMine had repurchased 16.1 million common shares under its $4 billion buyback program.
Even after Ether purchases cease, BitMine's holdings could increase through staking rewards. Lee previously indicated the company could sell ETH earned through staking to prevent its supply share from rising above the 5% threshold.
