Check out the BitPinas Token 2049 Coverage Here
Digital asset treasury firm Bitmine Immersion Technologies will halt its ether purchases after reaching a hard cap of 5% of the cryptocurrency’s circulating supply, company Chairman Tom Lee announced during the TOKEN2049 conference.
The Nasdaq-listed company currently holds 6 million ether, representing roughly 4.9% of the network’s total supply, and needs to acquire approximately 100,000 additional tokens to hit the ceiling. Speaking in Singapore, Lee stated that the decision to cap accumulation followed direct discussions with Ethereum co-founder Vitalik Buterin and Ethereum Foundation researchers seeking to prevent network centralization.
Lee declared that the broader digital asset market entered a new bull market cycle in August, arguing that halting corporate treasury accumulation will allow Bitmine to capture upside while protecting existing shareholders from further equity dilution.
“We only need to get another 100,000 ETH to get to 5%,” Lee said. “That is something that Vitalik kind of asked us to do, to stop at five. Justin Drake, the foundation. We are going to stop at 5%.”
The announcement comes as corporate digital asset treasuries hold an estimated 7% of total circulating ether. Lee outlined four structural drivers separating the current cycle from previous retail-driven expansions: institutional real-world asset tokenization, a projected $100 trillion intergenerational wealth transfer over the next 10 years, supply absorption by balance-sheet treasuries and the adoption of blockchain rails for artificial intelligence agent payments.
Lee also pointed to technical market indicators to support his cyclical outlook. Bitcoin moved above its 200-day moving average on Aug. 19, while ether recorded a golden cross on the same date. Lee said the market cycle reached its definitive bottom on Oct. 5, citing quantitative models developed by market timing analyst Tom DeMark.
Bitmine, which launched its treasury program 15 months ago, currently generates approximately $1 million daily in protocol yield through its Maven staking operation. The company also executed a $350 million share repurchase program starting July 14 and issued perpetual preferred shares to lower its cost of capital.
Lee projected that multi-year price consolidation and asset tokenization initiatives from traditional financial institutions, including BlackRock and JPMorgan, could drive ether toward a long-term target of $22,000.
Disclosure: AI is used to assist in developing this article.
This article is published on BitPinas: Token2049: Bitmine Caps Ethereum Treasury at 5% Supply as Chairman Tom Lee Declares New Bull Run
What else is happening in Crypto Philippines and beyond:
