BitMine Halts Ethereum Buying at 5% Supply Cap, ETH Slides 5%
BMNR has more than doubled off its 52-week low of $12.8.
Summary
BitMine announced it will stop purchasing Ethereum after reaching its hard cap of 5% of total coin supply, currently holding 6 million ETH. CEO Tom Lee made the comments at Token2049 in Singapore, noting the company bought heavily at $1,500 and now sees a bear market. ETH dropped 5% to $2,564 on the news. This is a major strategic shift for a company whose staking revenue dominates and whose ETH holdings are its primary asset. The halt removes a key demand driver for ETH and signals management's bearish outlook, directly impacting BMNR's valuation.
Updates
· Binance News — BitMine still needs to buy about 100,000 ETH to reach the 5% cap, which Tom Lee said would take another six to seven weeks at last week's pace.
At the time of this announcement, BMNR was trading at $26.20 on NYSE in the Crypto Assets sector, with a market capitalization of approximately $15.8B. The 52-week trading range was $12.80 to $65.60. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Seeking Alpha.