Ether is about to lose a steady buyer as Tom Lee says Bitmine will stop token purchases
Reported by CoinDesk · AI-assisted summary by ChikoCorp AI News Desk
AI-generated summary based on the linked source; not independently verified. This is not investment advice. Verify market-moving details at the original publisher before acting. See our editorial policy, AI content policy, and financial disclaimer.
Summary
Bitmine, an Ethereum-focused digital asset treasury firm, will stop buying ether (ETH) once its holdings reach 5% of the circulating supply, according to Bitmine chairman Tom Lee. The company currently holds over 6 million ETH, about 4.9% of the supply, and plans to acquire roughly 100,000 more tokens to hit its target. Bitmine started its steady ETH purchasing strategy in June 2025.
Why it matters
Bitmine has been a persistent source of demand for ETH by buying tokens weekly since mid-2025. Their decision to halt further accumulation once reaching 5% supply could reduce a steady buying pressure on ETH, which is currently experiencing price weakness. The source does not elaborate further on broader market impacts.
Key context
Bitmine began accumulating ETH during a bear market but much of its purchases occurred during last year’s bull run at higher prices, resulting in $4.5 billion in unrealized losses. ETH price recently dropped 5%, reaching its lowest since late September 2026. Bitmine’s strategy was originally expected to take five years but achieved near its target in just over one year.
Key numbers and entities
Bitmine holds 6,016,414 ETH worth approximately $15.5 billion, equal to 4.9% of 122.1 million circulating ETH. The firm has $643 million in cash and marketable securities and has spent about $41 million on ETH in the last week. ETH’s price was about $2,580 at the time of reporting. Tom Lee is Bitmine’s chairman.
What remains unclear
The source does not specify how Bitmine’s cessation of purchases might affect ETH’s price or market dynamics long term. It is also unclear whether Bitmine has plans for its existing ETH holdings or what alternatives, if any, it might pursue for asset allocation after stopping ETH purchases.