Bitmine Immersion Technologies slowed its Ethereum acquisitions drastically, buying only 7,430 ETH worth about $14 million last week, down over 93% from previous weekly purchases exceeding 120,000 ETH. This shift occurs as the company approaches its target of holding 5% of Ethereum's circulating supply.
Approaching Ethereum Ownership Milestone
Currently, Bitmine holds between 5.5 and 5.78 million ETH, representing roughly 4.5% to 4.8% of all Ethereum tokens in circulation. CEO Tom Lee cited the proximity to the 5% ownership threshold as the main reason for slowing new acquisitions. The deceleration marks a significant change from the company's months-long buying spree that steadily increased its Ethereum stake.
Capital Reallocation to Share Buybacks
As Bitmine winds down its ETH accumulation, it redirected $86 million into repurchasing about 5.5 million shares of its own stock. The firm also expanded its total buyback authorization to $4 billion, up from $1 billion earlier this year. This strategy reflects a pivot from solely accumulating cryptocurrency to generating shareholder value through share count reduction.
Implications for Ethereum and Investors
Bitmine's large-scale weekly ETH purchases were a notable source of demand. The recent sharp decline in buying reduces new token absorption, but the company has not sold any of its holdings. Over 4.7 million ETH are staked via the MAVAN validator platform, locking up the majority of the position and limiting its market availability.
The move resembles MicroStrategy's approach with Bitcoin, using significant crypto holdings on the balance sheet alongside stock buybacks to use asset price exposure. For Bitmine investors, this signals a shift toward engineered earnings-per-share growth rather than relying exclusively on ETH price appreciation.
Material is for informational purposes and does not constitute financial advice.
