At the renowned crypto event, Token2049, Tom Lee, the chairman of BitMine Immersion Technologies, addressed the company's Ethereum accumulation strategy.
At the event, Tom Lee publicly declared that the company will stop accumulating Ethereum once its holdings reach 5% of Ethereum's total supply.
BitMine's Ethereum holdings near hard cap
According to Tom Lee, 5% of Ethereum's total supply represents a hard cap for BitMine's holdings. Hence, this would mark the point where the company would hold back on its steady Ethereum purchases.
With BitMine now holding over 6 million ETH, which represents about 4.9% of Ethereum's total supply, Tom Lee confirmed that it only needs to buy about 100,000 ETH more to reach its target of the stated hard cap.
While the statement comes amid rising debates and controversies surrounding the company's business model, Tom Lee has seized the opportunity to end the dilution concerns surrounding its aggressive ETH treasury strategy.
What's next for BitMine?
With Tom Lee clearly noting that BitMine's aggressive Ethereum accumulation strategy will soon come to an end, market participants are beginning to raise questions about what the company may be up to next.
Nonetheless, Tom Lee's statement has briefly eased concerns among investors who consider the steady Ethereum accumulation strategy a source of potential dilution for BMNR shareholders.
With its Ethereum commitment nearly off the plate, it has also sparked fresh concerns among market participants who are worried that the company may begin selling off its stash, positioning Ethereum for further price declines.
Arman Shirinyan
Dan Burgin
