BitMine sets 5% Ether supply ‘hard cap’ as accumulation target nears
BitMine Immersion Technologies will cap its Ether holdings at 5% of the cryptocurrency’s supply, according to Chairman Tom Lee.
Speaking during a keynote at Token2049 in Singapore on Wednesday, Lee said BitMine is nearing the threshold after accumulating roughly 6 million Ether, equivalent to about 4.9% of the supply. He said the company needs about 100,000 ETH more to reach its target.
“That’s a hard cap. We’re not gonna be accumulating past 5%,” Lee said. “We’re not gonna own more than 5% of Ethereum.”
Lee had previously left open the possibility of accumulating more than 5% of Ether’s supply depending on Ethereum adoption. In an August interview with Bankless, he said the company may revisit that possibility in 2027.
BitMine says it is “done stacking” Ether
Lee said BitMine accumulated most of its Ether during what he described as a crypto bear market, saying that the company was able to build its position while prices were depressed.
“We did all this buying in a bear market,” Lee said. “We protected the downside for ETH because we were buying. But now, we’re done stacking in front of a 25X move.”
Lee also tied the 5% hard cap to BitMine’s capital strategy. Stopping its accumulation would remove the need to raise additional funds to keep buying Ether.
“So if we have a 5% hard cap, that means we’re gonna outperform ETH on the way up, right?” Lee said. “‘Cause you don’t have to worry about us trying to raise capital. We’re done.”
Related: Bitmine projects $334M in annual staking revenue from $15.8B crypto treasury
BitMine has tapped capital markets to build its Ether treasury. In June, the company launched a $300 million perpetual preferred stock offering. By early August, BitMine had repurchased 16.1 million common shares under its $4 billion buyback program.
Even after Ether purchases stop, staking could add to BitMine’s holdings. Lee previously said the company could sell ETH earned through staking to prevent its share of supply from rising above 5%.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Swiss Franc: Range trading persists against US Dollar – UOB
Exclusive Report – According to two sources, the first liquefied natural gas production line of Qatar Energy’s NFE project is ready and about to start operation.
According to two sources familiar with the matter, the first liquefied natural gas (LNG) production line under the "North Field East" expansion project by QatarEnergy is now ready and about to start operation, with the first batch of natural gas expected to be produced in November. This could provide Qatar with a way to restore some of the output lost due to attacks from Iran.
BlackRock’s Remarkable AI Scenario: “Bitcoin (BTC) Takes the Lead!”
BUZZ - Citi upgrades XPO rating to "Buy" due to increased market share and strong pricing power
October 7 - Citigroup has upgraded logistics company XPO (XPO.N) from “Neutral” to “Buy,” and raised its target price to $224, indicating an upside potential of about 22% from the previous trading day’s closing price. The brokerage stated that the upgrade was made after the stock declined from the $230 range to its current level of $183 per share. It also added that the recent broad pullback in the transportation sector has created a "more favorable risk-reward setup" for the third-quarter earnings season. Citigroup noted, "Notably, XPO has been particularly optimistic about its Q3 earnings, expecting an opportunity to gain market share and maintain pricing power." Among 26 brokerages, 19 rate the stock "Buy" or above, 6 rate it "Hold," and 1 rates it "Sell"; the median target price is $238 according to data compiled by the London Stock Exchange Group (LSEG). As of yesterday’s close, the stock had risen 35% year-to-date.
Crypto prices
More
