BitMine Immersion Technologies has officially established a hard cap on its Ether holdings, limiting them to 5% of the total circulating supply. Chairman Tom Lee announced this decision during the Token2049 conference in Singapore, confirming that the company will cease further accumulation once this threshold is reached.
The company currently holds approximately 6 million ETH, which accounts for about 4.9% of the supply. To reach the newly defined limit, BitMine requires an additional 100,000 ETH. Lee noted that the majority of these assets were acquired during a bear market, allowing the firm to build its position while asset prices remained depressed.
This strategic shift aims to eliminate the necessity for future capital raises dedicated to purchasing Ether. By halting accumulation, the company intends to improve its performance relative to ETH price movements. BitMine previously utilized capital markets to build its treasury, including a $300 million perpetual preferred stock offering launched in June.
Despite the cessation of active buying, BitMine may continue to manage its holdings through staking. Lee indicated that the company might sell ETH earned via staking rewards to ensure its total share of the supply does not exceed the 5% limit. Previously, the firm had considered the possibility of increasing its stake depending on market adoption.
