Ether Faces Loss of Major Buyer as Tom Lee Says Bitmine Will Halt Purchases

Bitmine chairman Tom Lee said the company will stop accumulating ether once it reaches a 5% share of ETH’s circulating supply, potentially bringing an end to a buying streak that began in mid-2025 and turned Bitmine into the world’s largest Ethereum treasury.

Ether, the second-largest cryptocurrency, could soon lose one of its most consistent sources of demand as Bitmine approaches its accumulation target.

Speaking Wednesday at TOKEN2049 in Singapore, Lee said Bitmine plans to halt ETH purchases once its holdings equal 5% of the cryptocurrency’s circulating supply. The target effectively puts a ceiling on the company’s aggressive buying strategy and its expansion as one of the largest ETH holders globally.

“We only need to get another 100,000 ETF to get to 5%,” Lee said. “Now we’re going to stop,” he added.

Bitmine is already close to reaching the threshold. In an update Monday, the company reported purchasing another $41 million worth of ETH last week, taking its holdings to 6,016,414 ETH. That represents about 4.9% of the 122.1 million ETH currently in circulation. At Wednesday’s price of roughly $2,580, the company’s holdings were worth about $15.5 billion.

Lee said the company originally expected the accumulation strategy to take five years but reached the target range in just over a year. He also highlighted that the purchases were made during a crypto bear market.

If Bitmine maintains last week’s pace, acquiring the additional 100,000 ETH needed to reach 5% would take roughly six to seven weeks.

The company reported holding $643 million in cash and marketable securities as of Monday, giving it more than enough liquidity to purchase the remaining ETH needed for its target at current prices.

End of Steady ETH Demand

Bitmine’s eventual pause could have implications for ether demand because the company has been a consistent buyer. Bitmine said it has purchased ETH every week since launching its ether treasury strategy in June 2025.

However, the company’s average purchase prices were higher during much of last year’s crypto bull market. As a result, Bitmine is currently carrying substantial unrealized losses on its ETH holdings. Data compiled by DropsTab puts those paper losses at approximately $4.5 billion.

Ether was already facing selling pressure Wednesday as the broader cryptocurrency market weakened. ETH fell 5% over the previous 24 hours to its lowest level since Sept. 20, declining nearly twice as much as bitcoin.