Bitmine’s massive Ethereum accumulation strategy may be approaching a turning point. After months of aggressively purchasing ETH to reach its ambitious ownership target, company chairman Tom Lee has suggested that the firm may not need to keep buying at the same pace.
The latest sign of Bitmine’s buying power came this week when the company added another 25,000 ETH from BitGo, completing a three-day accumulation streak totaling 125,000 ETH worth roughly $206 million. Ethereum responded positively to the news, climbing around 3% following the purchases.
The latest acquisitions have pushed Bitmine’s Ethereum holdings to approximately 5.54 million ETH, valued at nearly $9.18 billion. The company now controls about 4.6% of Ethereum’s total supply, bringing it remarkably close to its long-standing goal of owning 5% of all ETH.
Bitmine May Not Need to Reach 5% Through Buying Alone
For months, Bitmine’s Ethereum treasury strategy revolved around a single objective: acquiring 5% of Ethereum’s total supply, a plan often referred to as the “Alchemy of 5%.”
However, Lee recently signaled that the target may not require the same level of aggressive accumulation going forward.
“We may not even need to hit 5% of Ethereum.”
According to Lee, Ethereum’s changing supply dynamics could help Bitmine’s ownership percentage increase over time without the company having to continuously buy large amounts of ETH.
“The target may come to us.”
His argument centers on Ethereum’s shrinking available supply. Since the implementation of EIP-1559 in August 2021, more than 4.6 million ETH has been permanently removed from circulation through token burns. At the same time, approximately 39.5 million ETH about one-third of the network’s supply is currently staked, reducing the amount of ETH actively available in the market.
While Ethereum remains modestly inflationary, supply growth has slowed significantly, helping keep the overall supply trend close to flat. As a result, Bitmine’s existing holdings could naturally account for a larger share of the network over time.
Lee Remains Bullish on Ethereum’s Future
Although Lee hinted that Bitmine’s buying pace could eventually slow, his conviction in Ethereum remains unchanged.
Lee pointed to the security and reliability of major blockchain networks as one reason behind his long-term confidence.
“Ethereum and Bitcoin have had zero fraudulent transactions to date. Traditional finance can’t make that claim.”
He also believes Ethereum is well-positioned to benefit from the rise of artificial intelligence and autonomous digital commerce.
“As AI agents start transacting on their own, they’ll need a neutral, low-cost chain to settle on.”
According to Lee, Ethereum’s decentralized infrastructure could make it the preferred settlement layer for AI-driven transactions, creating a significant long-term demand driver for the network.
What Comes Next for Bitmine?
Bitmine has emerged as one of Ethereum’s largest institutional holders, with its treasury now valued at roughly $9.18 billion. The company’s aggressive buying strategy has become an important source of demand for ETH, helping fuel investor interest in recent months.
However, Lee’s latest comments suggest the focus may be shifting from accumulating more ETH at any cost to benefiting from Ethereum’s evolving supply dynamics.
With Bitmine already controlling roughly 4.6% of Ethereum’s total supply, the company appears closer than ever to its original goal. And if Lee’s thesis proves correct, Bitmine may not need to maintain its recent buying spree to get there.
Bitmine Nears 5% Ethereum Ownership as Tom Lee Says More ETH Buying May Not Be Necessary was originally published in Coinmonks on Medium, where people are continuing the conversation by highlighting and responding to this story.