Live updates: BitMine announces ETH buying limit. Ether, bitcoin slide
Traders betting on higher prices took the brunt of the forced selling, while oil climbed on Iranian tanker attacks. Fed minutes are due later Wednesday.
BitMine, a cryptocurrency investment firm, has set a hard cap of 5% for its Ether holdings, according to Chairman Tom Lee. Speaking at the Token2049 conference in Singapore, Lee confirmed that the company will not accumulate more than 5% of Ethereum's supply, which is currently equivalent to around 6 million Ether or 4.9% of the total supply.
Lee stated that the company needs an additional 100,000 Ether to reach this target. He emphasized that the 5% cap is a firm decision and not something the company will revisit, even in 2027 when he previously mentioned the possibility of accumulating more than 5%. Lee explained that BitMine has been amassing its Ether holdings during a bear market, allowing the company to build its position at depressed prices.
He also linked the hard cap to the company's capital strategy, stating that reaching the 5% limit would remove the need to raise additional funds to continue buying Ether. Lee highlighted that this would enable BitMine to outperform Ethereum's price increase without the burden of needing to raise capital.
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- BitMine sets 5% Ether supply ‘hard cap’ as accumulation target nears cointelegraph.com
