BitMine Immersion Technologies has set a cap on its Ethereum (ETH) holdings at 5 percent of total supply.

On Oct. 7 (local time), Cointelegraph reported that BitMine Chairman Tom Lee (톰 리) said in a keynote speech at Token2049 in Singapore that the company has secured about 6 million ETH. That is about 4.9 percent of total ETH supply. It would need to secure about 100,000 more ETH to reach its 5 percent target.

Lee called the limit a “cap” and said the company will not hold more than 5 percent of total Ethereum supply. It had previously left open the possibility of holding more than 5 percent depending on whether Ethereum adoption expands, but his remarks clarified the cap.

The decision is also tied to the company’s capital-raising strategy. Lee explained that setting a holding limit reduces the need to raise funds to buy additional Ethereum. “With a 5 percent cap, we can deliver better performance in an up-cycle,” he said. “We don’t have to worry about whether we will raise additional capital. We are already done with that step,” he said.

He also said BitMine bought most of the Ethereum it holds during a bear market. He argued the company’s purchases helped defend against declines in the ETH price and said there is no need to make additional purchases after reaching the target.

Even if it stops buying, its Ethereum holdings could increase through staking rewards. BitMine has said that if this pushes its holding share above 5 percent of total supply, it could adjust the proportion by selling staking rewards.

BitMine has raised funds in capital markets while also returning value to shareholders. In June, it began a $300 million offering of perpetual preferred stock. By early August, it had repurchased 16.1 million common shares under a $4 billion buyback programme.

Once its holding share reaches 5 percent, BitMine’s Ethereum strategy is expected to shift its focus from asset accumulation to operations and profit management. With less pressure to raise funds for additional purchases, how much it can increase shareholder value through staking income and share buybacks will become important. Key points to watch include the timing of purchases of the remaining roughly 100,000 ETH and how it will use staking rewards while maintaining the holding cap.