BitMine to Stop Buying Ethereum at 5% of Supply as Holdings…
By Karthik Subramanian
AI summary of the source article
BitMine Immersion Technologies announced plans to stop purchasing Ethereum once its treasury reaches 5% of the cryptocurrency's circulating supply. Chairman Tom Lee stated at the TOKEN2049 conference that the firm needs roughly 100,000 more ETH, a milestone it could reach in six to seven weeks. BitMine held 6,016,414 ETH worth roughly $16.4 billion as of October 5, along with $643 million in cash and marketable securities. The company has staked about 84% of its holdings, generating an annualized yield of 2.63%, and plans to focus on managing and earning staking revenue rather than accumulating indefinitely.
Why it matters
The cessation of BitMine's weekly purchases will remove a major source of corporate demand for Ethereum, while shifting the company's operational focus to large-scale staking yield generation.
Key facts
- BitMine holds 6,016,414 ETH, representing approximately 4.9% of Ethereum's 122.1 million circulating tokens.
- The company plans to stop buying ETH once it hits 5% of circulating supply, needing roughly 88,600 to 100,000 more ETH.
- BitMine has staked 5,067,309 ETH (about 84% of its position), generating an estimated annualized staking revenue of approximately $363 million at a 2.63% yield.