BitMine Immersion Technologies has set a 5% supply cap on its Ether holdings, according to Chairman Tom Lee. Speaking at the Token2049 conference in Singapore, Lee revealed that the company is nearing this threshold after accumulating around 6 million Ether, which is approximately 4.9% of the total supply. Lee stated that BitMine needs an additional 100,000 ETH to reach its target but emphasized that this 5% mark is a hard cap.
Lee previously indicated that BitMine might reconsider the 5% limit based on Ethereum adoption, but during the conference, he firmly stated that the company would not hold more than 5% of Ether’s supply. He also mentioned that most of BitMine’s Ether accumulation occurred during a bear market, allowing the company to build its position at lower prices. Lee noted that BitMine is now done stacking Ether, especially in anticipation of a significant price increase.
The 5% hard cap is also tied to BitMine’s capital strategy. By stopping its accumulation, the company avoids the need to raise additional funds for further purchases. Lee explained that this approach would allow BitMine to outperform Ether on the way up without the pressure of raising capital. Even after halting purchases, BitMine could still manage its holdings through staking, potentially selling staking rewards to maintain the 5% cap.
BitMine has previously tapped capital markets to build its Ether treasury, including a $300 million perpetual preferred stock offering in June and a $4 billion share buyback program.