BitMine May Slow ETH Buys as Holdings Near 5%

Tom Lee, chairman of BitMine Immersion Technologies, told a keynote audience at the Consensus conference in Miami that the company may slow its weekly purchases of roughly 100,000 ether as holdings near 5% of Ethereum’s total supply and could stop buying after reaching about 5.18 million ETH. The remarks came as BitMine reported faster-than-expected accumulation of ether since it began large-scale buying under a year ago.

BitMine has been acquiring just over 100,000 ETH each week, about $230 million at recent prices. At that pace, the firm would reach a 5% share of the network in roughly six weeks if purchases continued unchanged. Lee warned the company intends to reduce its buying speed and is slowing accumulation to reallocate capital to other crypto opportunities, without specifying those investments.

The company’s weekly purchases pushed its balance above 5 million ETH. In the week of April 27, BitMine purchased 101,901 ETH, bringing total holdings to about 5,078,386 ETH, a position the firm values at roughly $11.75 billion. Earlier in April, BitMine disclosed a purchase of 4.87 million ETH at an average price of $2,206 per token.

Those purchases made BitMine the largest corporate holder of ether and one of the largest corporate crypto treasuries. In its quarterly 10-Q, the company reported a $3.8 billion net loss and listed $3.78 billion in unrealized losses tied to fair-value accounting rules that mark token holdings to current market prices.

BitMine also expanded its equity base, increasing shares outstanding from 232 million to 494 million between Aug. 31 and Feb. 28 and boosting additional paid-in capital from $8.36 billion to $18.55 billion after raising more than $10 billion in equity over roughly six months.

The firm is active beyond token accumulation. It launched the Made in America Validator Network (MAVAN) for Ethereum staking and has made minority investments in consumer and technology ventures including Beast Industries and Eightco. Lee noted the company holds a range of investments alongside its ether position.

BitMine’s stock has traded independently of its ETH buys. On May 7, shares fell 4% to close at $22.01, about 86% below a prior peak of $161, despite a 9% rise in the prior month. Lee suggested the stock could reach $5,000 if ether climbed to $250,000.

Market moves have affected the company’s reported position. As of May 8, ether traded near $2,288, roughly 5% above BitMine’s average entry price on the large April purchase but below levels that would eliminate the firm’s unrealized accounting losses. Lee highlighted the pace of accumulation, noting it took about ten months to reach 5 million ETH.