Tom Lee (톰 리), chairman of BitMine Immersion Technologies, has declared he will stop accumulating ethereum at 5 percent, crypto outlet U.Today reported on Oct. 8 local time.
Lee said at the Token2049 event that he set 5 percent of ethereum’s total supply as a “hard cap” for the company’s holdings. That means BitMine will stop its steady purchases of ethereum once it reaches 5 percent.
BitMine currently holds more than 6 million ETH. That equals about 4.9 percent of ethereum’s total supply. Lee explained that the company needs to buy only about 100,000 more ETH to reach its 5 percent target.
The remarks came as controversy grows over BitMine’s business model. They are seen as an attempt by Lee to dispel concerns among shareholders about dilution tied to an aggressive ethereum treasury strategy. Some assessments say the announcement has temporarily eased dilution worries among holders of BitMine (BMNR).
The market has also raised new concerns. One view is that BitMine could sell its holdings after the accumulation ends. Analysts say that could add downward pressure on ethereum’s price. Market attention is focused on what BitMine will do after accumulation ends.
Hyunwoo Choo
cookinpapa@d-today.co.kr