Ether , the second-largest cryptocurrency, is about to lose one of its most persistent sources of demand as Ethereum-focused digital asset treasury firm Bitmine will soon stop accumulating the token.
Bitmine chairman Tom Lee, speaking Wednesday at TOKEN2049 in Singapore, said the firm will stop accumulating ETH once its holdings reach 5% of the token’s circulating supply, setting a hard ceiling on a buying spree that has made the company one of the world’s largest ETH holders.
“We only need to get another 100,000 ETF to get to 5%,” he said. “Now we're going to stop,” he added.
Bitmine is already almost at that threshold. In its latest update, the company said Monday that it bought another $41 million in ETH last week, bringing its holdings to 6,016,414 ETH, or roughly 4.9% of the 122.1 million tokens in circulation. At ether’s Wednesday price around $2,580, that stack is worth about $15.5 billion.
“We thought this would take five years,” Lee said on stage. “It took us a little over a year. More importantly, we did this all in the middle of a bear market.”
At last week’s buying pace, adding another 100,000 ETH would take about six to seven more weeks, assuming the company continues to accumulate at roughly the same rate.
The firm held $643 million in cash and marketable securities that it could use for further ETH purchases, according to the Monday update, more than twice the amount it would need to buy the remaining ETH required to reach its 5% target at current prices
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