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ZEC $1,204 BitMine Will Stop Buying ETH at 5% Supply Cap
BitMine chairman Tom Lee announced the firm will halt Ethereum purchases once holdings hit 5% of circulating supply, per Token2049 remarks.
Key takeaways
- BitMine nears ETH cap. BitMine holds 6,016,414 ETH, roughly 4.9% of circulating supply, and needs ~100,000 more to hit its 5% hard cap.
- ETH posts weekly drop. ETH fell 5% in the week to October 8, dropping to a $2,500 support level.
- ETF outflows continue. US spot ETH ETFs recorded outflows for six consecutive trading days as of the October 8 report.
What happened
BitMine chairman Tom Lee announced the firm will halt Ethereum purchases once its treasury holdings reach 5% of the cryptocurrency's total circulating supply. Lee shared the update during the Token2049 Singapore event on October 7, noting the company needs roughly 100,000 additional ETH to hit the threshold, which it has designated as a hard cap to optimize shareholder value. As of the latest report, BitMine holds 6,016,414 ETH, equivalent to roughly 4.9% of circulating supply, after acquiring approximately $41 million worth of the asset in the prior week.
Why it matters
The end of BitMine's recurring ETH purchases removes a consistent source of institutional demand for the asset, at a time when US spot ETH ETFs have recorded outflows for six consecutive trading days. ETH had fallen 5% in the week leading up to October 8, hitting a $2,500 support level, leaving the asset exposed to further downside if marginal buying dries up.
Questions readers ask
Why is BitMine stopping ETH purchases?
BitMine chairman Tom Lee said the firm will halt ETH buys once its holdings reach 5% of circulating supply, a limit the company set as a hard cap to optimize shareholder value. The firm needs roughly 100,000 more ETH to hit the threshold.
How much ETH does BitMine currently hold?
As of the latest report, BitMine holds 6,016,414 ETH, equivalent to roughly 4.9% of Ethereum's total circulating supply.
What is ETH's current price support level?
As of October 8, ETH was testing the $2,500, $2,560 support band after a 5% weekly decline. A sustained close below $2,500 could push the asset lower to the $2,330, $2,355 range.
