BitMine Races Towards 5% ETH Holdings Amid Rapid Acquisition Pace
BitMine Immersion Technologies, an Ethereum treasury company, is rapidly acquiring Ether (ETH) at a pace that could see it reach its goal of holding 5% of ETH's supply by early November. According to Cointelegraph's review of BitMine's 12 weekly updates from July 13 to September 28, the company has been buying an average of approximately 21,600 ETH per week, totaling around 259,000 ETH acquired over this period.
As of Sunday, BitMine reported holding 6,001,302 ETH, which accounts for about 4.9% of Ethereum's total supply of 122.1 million ETH. Reaching its 5% target would require the company to hold around 6.105 million ETH, leaving a gap of approximately 103,700 ETH.
Based on BitMine's current buying pace, it is estimated that it will close this gap in about 4.8 weeks. However, if the company were to change its purchasing rate, this estimate could shift.
In an August interview with Bankless, Tom Lee, Chairman of BitMine, discussed the implications of holding more than 5% of Ethereum's supply. He stated that it could make sense to do so if Ethereum's use expands and more enterprises begin holding ETH, although he noted that BitMine would likely revisit this question in 2027.
If BitMine decides to maintain its holdings around 5%, Lee suggested that the company would sell Ether generated from staking rewards to prevent its share of supply from increasing. He also mentioned that MAVAN, BitMine's institutional staking platform, is handling over $2 billion in crypto from outside clients as the company expands beyond simply accumulating Ether.