Tom Lee’s Bitmine Nears 5 Percent of All Ethereum as It Hits the Brakes on Buying — and Starts Buying Back Stock

Bitmine is closing in on a remarkable milestone: controlling nearly 5 percent of all Ethereum in circulation. But the biggest Ethereum treasury firm in the world just hit the brakes on its buying spree, and the reason reveals a fascinating strategy shift that could matter for every ETH holder.

By Diego Rivera | July 21, 2026

The Numbers Behind the Slowdown

The company, officially called Bitmine (BMNR) and chaired by well-known market analyst Tom Lee, added just 7,430 ether to its holdings last week, according to a Monday corporate update covered by CoinDesk. That is a dramatic slowdown from the tens of thousands of ETH the firm regularly purchased throughout late 2025 and early 2026.

The reason is straightforward: Bitmine decided to redirect capital into buying back its own stock.

According to the company, Bitmine repurchased approximately 5.5 million shares at an average price of 15.62 under a previously authorized 4 billion buyback program. The stock was up over 2 percent in pre-market trading following the announcement.

Here is what the latest figures show:

• Total ETH holdings — approximately 5.78 million ether, or roughly 4.8 percent of all Ethereum in circulation
• Staked ETH — 4.92 million, about 85 percent of total holdings, generating projected annual staking revenue of around 247 million
• Total corporate holdings — 11.5 billion in crypto, cash, and securities as of Sunday
• Other assets — 207 bitcoin, 385 million in cash and marketable securities, plus stakes in Beast Industries and Eightco Holdings

In other words, this is not a company losing faith in Ethereum. This is a company that already owns a staggering share of the network deciding to balance its portfolio.

Why a Treasury Company Would Buy Back Stock

For regular investors, the logic here is actually pretty simple. Imagine you have been buying a particular asset aggressively for over a year. You now control almost 5 percent of the entire supply. At some point, each additional purchase has less impact on your overall position — you are already massively exposed.

That is exactly where Bitmine finds itself. The firm adopted its Ethereum treasury strategy in June 2025, and since then has purchased ETH every single week without exception. The latest weekly addition of 7,430 ETH, worth roughly 14 million at current prices near 1,896, is one of its smallest buys since the strategy began.

Chairman Tom Lee was direct about the reasoning in comments to CoinDesk. The reduced pace of buys reflects that Bitmine repurchased 5.5 million common shares, Lee explained, emphasizing that the company has maintained its weekly ETH purchasing streak for over a year straight.

The buyback makes sense from a capital allocation standpoint. Bitmine stock was trading well below the value of its net assets. By buying back undervalued shares, the company effectively returns value to existing shareholders without selling any Ethereum.

What This Means for Ethereum Investors

This is where the story gets interesting for anyone holding ETH or considering buying it.

When a single entity controls nearly 5 percent of a cryptocurrency’s circulating supply, the dynamics shift in several important ways. First, a large holder slowing its purchases naturally reduces buying pressure on the open market. That could mean less upward price momentum from institutional demand in the short term.

But there is a flip side. Bitmine staking 85 percent of its holdings means that ETH is effectively locked up and removed from circulation. Staked ether cannot be quickly sold. This creates a supply squeeze effect — less ETH available for trading even as demand from other sources, including exchange-traded funds and decentralized finance protocols, continues.

The staking revenue figure is also worth noting. A projected 247 million in annual staking revenue from 4.92 million staked ETH represents a meaningful yield. For context, that is income generated by helping secure the Ethereum network, similar to earning interest on a savings account but through blockchain participation.

Additionally, the fact that Bitmine chose to buy back stock rather than sell any ETH sends a signal. The company could have raised cash by liquidating some of its enormous Ethereum position. Instead, it used other capital to repurchase shares while maintaining its ETH stack. That is a bullish signal for Ethereum long-term.

The Broader Altcoin Market Context

The Bitmine slowdown comes at a challenging time for altcoin investors. Ethereum is trading near 1,896, down significantly from its peaks above 4,000 in previous cycles. The broader altcoin market has been under pressure, with many major tokens trading well below their all-time highs.

Market sentiment indicators, including the Fear and Greed Index, have been pointing to fear in recent weeks. In this environment, having a major institutional buyer signal continued long-term conviction, even at a reduced pace, provides a measure of stability.

The fact that Bitmine’s total holdings are worth 11.5 billion also demonstrates just how much traditional finance infrastructure has been built around Ethereum. This is not speculative retail money. This is a publicly traded company with a chairman who appears regularly on major financial media, making calculated treasury management decisions.

The Verdict

For Ethereum investors, the Bitmine slowdown is a double-edged development. On one hand, the largest single buyer stepping back from aggressive accumulation removes a key source of demand. On the other, the firm’s continued commitment to holding and staking, combined with its decision to buy back stock instead of selling ETH, signals deep long-term confidence.

The real question for the market is what happens when Bitmine finally crosses the 5 percent threshold. At 4.8 percent of supply already, that milestone could come within weeks. When it does, the firm may further reduce purchases, removing one of the most significant institutional buyers from the Ethereum market entirely.

In the meantime, the 4.92 million ETH staked and earning yield continues to constrain available supply. For investors wondering whether the Ethereum thesis is still alive, Bitmine’s actions suggest the answer is yes — even if the pace of accumulation is shifting.

The cryptocurrency market remains highly volatile. This article is for informational purposes only and does not constitute financial advice.

Disclaimer: This article is for informational purposes only and does not constitute financial advice.

Disclaimer: This article is for informational purposes only and does not constitute financial advice.