Bitmine to Stop Buying Ether at 5% of Supply, Tom Lee Says; ETH Drops Nearly 6%

Author: Crypffalo Research · 21:53 07/10/2026

Tom Lee says Bitmine, which holds over 6 million ETH (4.9% of supply), will stop buying once it reaches 5%. ETH fell about 5.7% to around $2,565, underperforming bitcoin.

Bitmine to Stop Buying Ether at 5% of Supply, Tom Lee Says; ETH Drops Nearly 6%

Bitmine Immersion Technologies chairman Tom Lee said the company will stop buying ether (ETH) once its holdings reach 5% of circulating supply. Speaking at TOKEN2049 in Singapore on Wednesday, Oct 7, Lee said Bitmine "only need[s] to get another 100,000 ETH to get to 5%," after which purchases will end. The remarks landed on a risk-off day driven by surging Treasury yields and oil prices, and ETH fell about 5.7% over 24 hours to around $2,565.

Key takeaways

Bitmine holds 6,016,414 ETH, or roughly 4.9% of the 122.1 million ETH in circulation, worth about $15.5 billion.
The firm needs fewer than 100,000 more ETH to hit 5% (about 88,600 ETH based on current circulating supply).
Bitmine has around $643 million in cash and marketable securities, more than enough to finish the remaining purchases.
ETH underperformed bitcoin: ETH lost about 5.7% while BTC dropped roughly 4% and slipped below $83,000.
Bitmine shares (BMNR) fell about 6% after the comments.

How Bitmine built its ETH treasury

Bitmine launched its ether treasury strategy in June 2025 and has bought ETH every week since. Lee said the company originally expected the 5% goal to take around five years, but it got there in just over one year, much of it during a market downturn. Recently, Bitmine has been buying at a pace of about $41 million per week.

With more than 6 million ETH, Bitmine ranks among the largest corporate holders of ether. According to Coinpedia, roughly 84% of that stack is staked to generate yield. CoinDesk, however, notes the firm is sitting on about $4.5 billion in unrealized losses on its ETH position, as its average cost is above current prices.

Why the market took it badly

For more than a year, Bitmine has acted as a reliable weekly bid for ETH, deploying tens of millions of dollars every week. With that steady source of demand about to switch off, some traders worry ether is losing an important pillar of support, at a time when fresh capital inflows into crypto have slowed.

At roughly $41 million a week, Bitmine could complete its remaining purchases in about six to seven weeks, so the actual supply-demand impact will play out gradually rather than all at once. Markets, though, tend to price in news early, and Wednesday's session showed ETH falling harder than bitcoin.

The macro backdrop amplified the move. The 30-year U.S. Treasury yield climbed to around 5.7% and Brent crude topped $100 a barrel, weighing on risk appetite across asset classes. Coinpedia data showed about $216 million in ETH derivatives positions were liquidated, the vast majority of them longs.

What it means for crypto markets

In the bearish case, the end of Bitmine's buying could weaken ETH demand in the near term, especially as other crypto treasury companies also slow down and several treasury stocks trade below the value of their holdings. If spot Ethereum ETF inflows don't pick up the slack, ETH could continue to lag bitcoin.

In the more constructive case, a hard 5% cap also removes a different concern: excessive concentration of ETH in a single company. Bitmine has not signaled any plan to sell, most of its ETH is staked and effectively out of circulation, and the company still holds substantial cash, so it faces no immediate pressure to liquidate. Once the macro picture calms down, ether's underlying supply and demand could be viewed in a more balanced way.

What to watch next

Bitmine's weekly holdings updates over the next six to seven weeks, to see whether its buying pace changes.
Flows into and out of U.S. spot Ethereum ETFs, the other key source of institutional demand.
The Fed meeting minutes, U.S. CPI on Oct 14 and the Fed's Oct 27–28 meeting — track them on the economic calendar.
Derivatives liquidations during sharp price swings — see real-time liquidations.

Frequently Asked Questions

Will Bitmine sell its ETH after reaching 5%?

There is no indication Bitmine plans to sell. Lee only said the company will stop adding to its position once it reaches 5% of circulating supply.

When will Bitmine stop buying ETH?

Bitmine needs fewer than 100,000 more ETH. At around $41 million per week, that could take roughly six to seven weeks, depending on ETH prices and the company's decisions.

Why did ETH fall more than bitcoin today?

On top of the broad pressure from rising bond yields and oil, ETH faced a coin-specific hit from the Bitmine news, along with roughly $216 million in ETH position liquidations.

*This content is for information only and is not financial advice.*

Tags: Ethereum, Bitmine, Tom Lee, Institutions

Crypffalo: Crypto news & data