Bitmine ends Ethereum purchases after reaching 5% supply target

Bitmine’s impending halt to ETH purchases marks the end of a rare source of consistent weekly demand for Ethereum, removing support that may have cushioned the token during a prolonged downturn. With the company already holding 4.9% of circulating supply and sitting on nearly $4.5 billion in unrealized losses, the shift signals confidence in current valuations and raises questions about whether institutional buyers will fill the vacuum.

• Bitmine holds 6,016,414 ETH, representing 4.9% of the 122.1 million tokens in circulation, worth $15.5 billion as of Wednesday.
• Tom Lee said the company needs only 100,000 more ETH to reach its 5% target, a threshold it could cross in six to seven weeks at its current buying pace.
• Bitmine has purchased ETH every week since launching its treasury strategy in June 2025, providing unusually steady demand now about to end.

• 6.02M ETH tokens held by Bitmine as of October 4, 2026
• $15.5B Current value of Bitmine’s ETH holdings at Wednesday’s price
• 4.9% Bitmine’s share of total circulating ETH supply
• $4.5B Unrealized losses on Bitmine’s ether holdings

Ether is poised to lose one of its most consistent institutional buyers. CoinDesk reported that Bitmine Chairman Tom Lee announced Wednesday at TOKEN2049 in Singapore that the company will cease accumulating ETH once its holdings reach 5% of the token’s circulating supply. According to a press release issued October 5, Bitmine already holds 6,016,414 ETH worth approximately $15.5 billion, or 4.9% of the 122.1 million tokens in circulation. The company needs roughly 100,000 more tokens to hit its stated ceiling.

Bitmine could reach its 5% target in six to seven weeks

At its current acquisition rate, adding the final 100,000 ETH required to reach 5% would take approximately six to seven weeks, assuming Bitmine maintains its weekly purchasing discipline.

Lee said on stage that the company planned to reach this milestone over five years but accomplished it in just over 12 months. “More importantly, we did this all in the middle of a bear market,” he stated, referring to the crypto downturn that persisted through much of 2025 and into 2026. The firm holds $643 million in cash and marketable securities, more than twice the amount required to purchase the remaining ETH needed at current prices.

Bitmine bought another $41 million in ETH last week, continuing a buying streak that has defined the company’s strategy since the treasury initiative launched June 30, 2025.

Bitmine’s underwater position undercuts claims of strategic timing

The company’s significant unrealized losses complicate the narrative of opportunistic buying during a bear market. According to data compiled by DropsTab, Bitmine’s ETH holdings carry $4.5 billion in unrealized losses, meaning a substantial portion of the company’s purchases occurred at markedly higher prices than current levels. This reflects the reality that much of Bitmine’s accumulation happened during the 2025 bull market, when ETH commanded higher valuations.

Ether itself fell 5% over the 24 hours ending Wednesday, sliding to its weakest price since September 20 and declining nearly twice as much as Bitcoin amid broader cryptocurrency weakness. The departure of Bitmine as a buyer removes a source of mechanical support that has provided ETH with weekly demand regardless of price conditions or market sentiment.

The staking component cushions downside but raises capital allocation questions

The staking infrastructure addresses a capital efficiency question: once Bitmine stops buying, how will it deploy cash that would have gone into ETH purchases?

The company’s decision to cap its ETH accumulation at 5% reflects a deliberate strategic choice rather than capital constraints. The firm holds $643 million in cash and marketable securities and retains the flexibility to allocate capital to other digital assets or return capital to shareholders through buybacks and dividends.

The BlockWest read. We see Bitmine’s 5% ceiling as a liquidity threshold disguised as a milestone. Once the company stops weekly ETH purchases, institutional flows will determine whether Ethereum finds new support or slides further under reduced demand. The real test is whether other large treasuries or ETH stakers accelerate acquisitions to fill the gap Bitmine leaves behind.

Tom Lee spoke Wednesday at TOKEN2049 in Singapore, where he announced the company’s plan to stop accumulating ETH at the 5% threshold and discussed its capital allocation strategy and outlook for the cryptocurrency cycle ahead.

BlockWest is a news publication. Nothing here is investment advice. Read our disclaimer and editorial policy.