Tom Lee’s BitMine Buys $41M in Ethereum Amid Whispers of Pausing Its Accumulation Spree

BitMine Immersion Technologies (BMNR) has purchased approximately $41 million worth of Ethereum, further expanding its cryptocurrency treasury strategy. The purchase brings the company one step closer to holding 5% of Ethereum’s total supply, but there are emerging signals that it could halt its aggressive acquisition.

BitMine snags more ETH for its balance sheet

According to onchain data, Tom Lee’s BitMine has extended its ETH buying streak with yet another acquisition. The firm scooped 25,000 ETH, valued around $41 million at current prices, from BitGO’s institutional trading desk. With the latest purchase, BitMine has added 125 ETH ($206 million) in the last three days, underscoring an aggressive buying spree. 

Source: Arkham 

Last week, the company made its largest Ethereum purchases since the start of the year, snapping up 126,971 ETH for $214 million.

At the moment, BitMine’s ETH holdings have topped 5.55 million ETH, representing over 4.6% of Ethereum’s total supply. Bitmine has staked a large portion of its ETH, a move designed to grow its ETH holdings in the coming months.Following the purchase, ETH price recorded a noticeable uptick, climbing by nearly 3% in the first hour following Bitmine’s purchase. 

At press time, Ethereum is trading at $1,603 mark, pulling itself after reaching an intraday trading low of $1,603. Meanwhile, daily trading volume is down 6%, with traders remaining cautious across the board over geopolitical tensions.

Despite the purchase, BMNR stock closed at $15.64, a decline of nearly 4% over the last day. The stock fell 7% and 33% on the seven-day and one-month charts, respectively, signaling waning investors’ interest.

Is Tom Lee planning to halt Ethereum purchases?

After a long streak of steady Ethereum purchases, there are swirling whispers that the company could pause its accumulation strategy in the near term. The concerns stem from Tom Lee’s recent remarks at a Digital Asset Council of Financial Professionals (DACFP) event.

According to Bloomberg ETF analyst Eric Balchunas, Tom Lee disclosed that BitMine does not need to own more than 5% of Ethereum’s total supply. 

At the moment, BitMine is within touching distance of the 5% milestone, holding 4.6% of Ethereum’s total supply. Previously, Tom Lee has advanced the “Alchemy of 5%” for BitMine, encapsulating an aggressive Ethereum buying strategy. Given the latest remarks, BitMine could pause its buying when it crosses the 5% milestone.

At the moment, Bitmine holds a clear lead over other Ethereum treasury companies. Its closest rivals, SharpLink Gaming and The Ether Machine, hold approximately 863,000 ETH and 496,000 ETH, respectively.