Bitmine Nears Peak, Tom Lee Eyes 5% ETH Stake

Bitmine to Halt Ethereum Accumulation at 5% Circulating Supply Milestone

Singapore – Bitmine Immersion Technologies, a significant holder of Ethereum, announced at TOKEN2049 Singapore that it will cease its weekly accumulation of the cryptocurrency once its holdings reach 5% of the circulating supply. The company currently possesses 6.016 million ETH, representing approximately 4.9% of the circulating supply. This marks the impending end of a more than year-long consistent buying strategy.

A Major Institutional Buyer Steps Back

Tom Lee, Chairman of Bitmine, declared during the Singapore event that the company would stop purchasing ETH once its stake hits the 5% threshold. This decision signals the conclusion of one of the most stable and persistent buying forces in the Ethereum market.

“We only need to acquire another 100,000 ETH to reach 5%, and then we will stop,” Lee stated. Bitmine’s current holdings of 6,016,414 ETH represent about 4.9% of the 122.1 million circulating ETH. At the pace of its recent weekly purchases, which averaged $41 million last week, Bitmine is projected to reach its target within six to seven weeks.

A Disciplined Strategy in a Volatile Market

Bitmine’s Ethereum treasury strategy commenced in June 2025. Lee recalled during his address that he initially anticipated the task would take five years to complete, but it was achieved in just over a year, notably amidst a bear market.

Such financial discipline is a rarity in the cryptocurrency space. While MicroStrategy is well-known for its weekly Bitcoin purchases, Bitmine has been one of the few entities to execute a similar strategy for Ethereum. Over the past year, Bitmine has consistently bought ETH weekly, irrespective of price fluctuations, establishing itself as a reliable buyer on the Ethereum network.

Unseen Losses Underscore Long-Term Conviction

Bitmine’s Ethereum holdings are currently valued at approximately $15.5 billion, based on an ETH price of around $2,580. However, data compiled by DropsTab indicates that Bitmine’s ETH investment currently carries an unrealized loss of $4.5 billion. This situation arises because a substantial portion of the purchases occurred during the peak of last year’s crypto bull market. As ETH prices retreated from their highs, Bitmine’s average cost basis significantly exceeded the current market price. Lee did not address the losses during his presentation, but the figures suggest Bitmine’s accumulation strategy is driven by long-term conviction rather than short-term speculation.

The company still holds $643 million in cash and marketable securities, which is more than sufficient to cover the remaining 100,000 ETH purchase, estimated at approximately $258 million at current prices. Therefore, funding is not a constraint; the decision to halt purchases is driven by the achievement of a predetermined goal.

Market Implications Amidst ETH Weakness

Bitmine’s announcement comes at a time when Ethereum has shown signs of weakness. On October 7, ETH fell 5% in 24 hours, reaching $2,564, its lowest point since September 20. During the same period, Bitcoin experienced a roughly half that decline, suggesting a weakening market sentiment towards ETH.

Bitmine’s consistent weekly purchases have provided a stable demand floor for ETH over the past year. While the individual purchase amounts may not be massive in the context of the overall market, the sheer consistency served as a signal of market confidence. Retail and institutional traders often viewed these regular acquisitions as an implicit price support.

The cessation of this steady buying pressure means that Ethereum’s price support structure will need to recalibrate. Without a new institutional buyer to fill the void, ETH could face increased volatility in the short term.

Future Strategies and Market Repercussions

Lee’s remarks did not elaborate on Bitmine’s post-5% strategy. Several possibilities warrant attention: a shift in focus to other crypto assets or traditional markets; maintaining its current position through passive holding; or awaiting a future accumulation cycle.

Another point of observation is Bitmine’s status as a publicly traded company (BMNR). As a listed entity, its treasury strategy and financial reporting directly influence its stock performance. The $4.5 billion unrealized loss is likely to continue to weigh on shareholder sentiment in upcoming quarterly reports, particularly if ETH prices do not recover swiftly.

For the broader Ethereum ecosystem, Bitmine’s exit signifies the end of a particular phase in the “treasury race.” Over the past year, several companies have emulated MicroStrategy’s Bitcoin strategy by turning to ETH, including Metaplanet and DeFiance. Bitmine had been among the most aggressive accumulators in this group. As a leading player announces it has met its target, other followers may also face pressure to re-evaluate their own strategies.