Bitmine is approaching the end of its ethereum buying program after Chairman Tom Lee said the company will stop accumulating ETH once it reaches 5% of total supply. According to Lee, the company is now only about 100,000 ETH short of that limit.
Lee said Bitmine has set a firm ceiling and does not plan to own more than 5% of ethereum. He added that Vitalik Buterin had encouraged stopping at that level, as the company closes in on one of the largest corporate ETH accumulation efforts recorded.
Holdings are close to the target
Bitmine currently holds about 6 million ETH, equal to roughly 4.9% of ethereum’s supply. As of Oct. 19, the company reported holdings of 6,041,481 ETH, valued at nearly $14.5 billion in the source report.
Lee said Bitmine has a “5% hard cap,” meaning the company intends to stop buying once it reaches that threshold. Based on the figures provided, only around 100,000 ETH remain before Bitmine hits the limit.
Accumulation happened faster than planned
Lee said Bitmine originally expected its accumulation strategy to take around five years. Instead, the company reached 4.9% of supply in a little over a year, despite operating during a bear market.
The pace was helped by aggressive purchases when ETH prices were lower, including buying around $1,500. That strategy has left Bitmine as one of the most concentrated corporate holders of ethereum.
Buying continued even near the cap
Bitmine kept adding to its position as it approached the stated limit. On Oct. 19, the company bought another 12,535 ETH, lifting total holdings to 6,041,481 ETH.
Two days later, Bitmine staked an additional 159,728 ETH, worth about $390.6 million according to the report. That brought roughly 86.5% of the company’s treasury into staking, indicating that its ETH strategy is now extending beyond simple accumulation into yield-generating use.
Focus shifts to market impact and next phase
Once Bitmine stops buying, a steady institutional source of demand for ETH will disappear. The source article said that ETF inflows, staking growth, and wider institutional adoption may need to fill that role as marginal buyers if demand is to be replaced.
Lee also pointed to Bitmine’s inclusion in the Russell 1000 as a way institutions can gain listed-market exposure to ethereum through the company. Even after direct purchases end, that could allow Bitmine to remain part of the broader institutional conversation around ETH.
The next confirmed step is straightforward: Bitmine continues buying only until it reaches the 5% supply cap it has set, after which the company’s ethereum strategy appears set to center more on managing and staking its existing holdings rather than expanding them further.
Source: news.bitcoin.com