BitMine plans to stop accumulating Ether once its holdings reach 5% of ETH’s circulating supply, according to comments from Tom Lee at the Token2049 conference in Singapore on Oct. 8. Lee described the threshold as a firm cap and said the company would not continue adding to its position beyond that level.
Based on the company’s latest disclosure, which reflects its most recent purchase on Monday, Oct. 4, BitMine held about 6,016,414 ETH. That amounts to roughly 4.9% of the circulating supply, which was cited at about 122.1 million ETH. Lee said the company needs to buy only around 100,000 more ETH to reach the 5% mark, then it will stop.
The report added that, at last week’s pace of purchases, BitMine would need another six to seven weeks to hit the cap. Lee also said that once the company stops increasing its ETH position, it would no longer need to raise financing to buy more coins. In that scenario, shareholders could be relatively better positioned if ETH rises.
Tom Lee said at the Token2049 conference in Singapore on Oct. 8 that BitMine has set a 5% share of Ether’s circulating supply as a hard cap for its holdings. Once it reaches that level, the company will stop buying more ETH.
Lee said, “This is a hard cap. We will not continue accumulating after going above 5%. We will not hold more than 5% of Ethereum. We only need to buy about 100,000 more ETH to get to 5%, and then we stop.”
BitMine’s ETH holdings are close to the limit
According to the company’s latest disclosure, covering its most recent purchase on Monday, Oct. 4, BitMine held about 6,016,414 ETH. That represented roughly 4.9% of the circulating supply, which was cited at about 122.1 million ETH. On that basis, the company is about 90,000 to 100,000 ETH short of the 5% threshold.
At last week’s buying pace, the cap is still 6 to 7 weeks away
The report said BitMine would need another six to seven weeks to reach the hard cap if it keeps buying at last week’s pace.
No more financing for coin purchases after accumulation stops
Lee also said that once BitMine stops increasing its ETH holdings, the company would no longer need to raise financing to buy more coins. He added that shareholders could be relatively better positioned if ETH rises.
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