Key Takeaways
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Tom Lee’s BitMine has accumulated more than 4.2 million ETH, representing 3.48% of supply.
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Traders are concerned about what will happen to Ethereum when its largest buyer reaches its 5% target.
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BitMine plans to shift from accumulation to monetization through large-scale ETH staking.
Tom Lee’s BitMine is more than two-thirds of the way toward a self-declared goal of owning 5% of all Ethereum in circulation, raising questions among traders about what happens to the asset once its largest corporate buyer slows or stops accumulating.
In a press release dated Jan. 20, BitMine said its total crypto holdings, cash and so-called “moonshot” investments totaled $14.5 billion.
Chairman Tom Lee said in a post on X this week that BitMine was “74% of the way there to the ‘alchemy of 5%,’ referring to the company’s self-proclaimed accumulation target.
The company said it held 4,203,036 ETH, valued at $3,211 per token based on Coinbase pricing, alongside 193 Bitcoins, $979 million in cash, and a $22 million equity stake in Eightco Holdings.
BitMine said it acquired more than 35,000 ETH in the past week alone.
The firm also recently announced a $200 million investment in Beast Industries, the privately held media company associated with YouTube creator MrBeast.
“MrBeast is the most widely watched creator in the world,” Lee said in a statement, citing audience reach metrics that he said rival or exceed those of major global media companies.
BitMine said its crypto holdings make it the world’s largest Ethereum treasury and the second-largest corporate crypto treasury overall, behind Strategy, which holds more than 670,000 bitcoin.
A central pillar of BitMine’s strategy is converting its Ethereum holdings into a recurring revenue stream through staking.
The company said it has already staked about 1.84 million ETH, valued at roughly $5.9 billion, and is working with three staking providers as it develops its own staking platform.
At scale, BitMine estimates that staking could generate roughly $374 million in annual fees based on a composite Ethereum staking rate of about 2.8%, or more than $1 million per day.
Lee said Ethereum’s improving price performance relative to Bitcoin reflects growing institutional adoption, pointing to recent disclosures by major financial firms building tokenization infrastructure on the network.
As BitMine nears its 5% target, some traders have begun to speculate about the impact on Ethereum prices if the company’s buying slows or stops.
“The leading buyer of Ethereum stops buying. Demand dries up. Ether falls,” one market participant wrote in response to Lee’s post on X.
Other traders warned that prices could decline further if BitMine’s accumulation phase ends.
Some skeptics also question the broader institutional adoption thesis, arguing that large banks are developing private blockchain systems rather than relying on public networks such as Ethereum.
Ethereum was trading around $2,963 on Wednesday, down about 11% over the past week and nearly 50% below its all-time high reached in August.
Lee has dismissed concerns that BitMine’s growing stake could lead to excessive influence over the Ethereum network.
In November, Lee said internal research and discussions with analysts at Fundstrat and Standard Chartered suggest that ownership levels of up to 10% would not threaten Ethereum’s decentralization.
“If someone has 10% of a system, they aren’t in control of it,” Lee said in a recent interview with Ark Invest’s Chief Executive Cathie Wood.
Lee also said that once BitMine reaches its 5% threshold, the company will shift its focus from accumulation toward monetization, primarily through staking and integration with institutional finance.
From a technical perspective, Ethereum has struggled to extend its recent rally, with prices failing to break above the $3,438 resistance level on the daily chart, according to CCN analyst Victor Olanrewaju.
“That rejection matters because it shows sellers still control the supply zone, and buyers have not forced a clean trend expansion yet,” Olanrewaju said.
Price structure has also weakened, with Ethereum slipping below its 20-day exponential moving average, a level often watched by traders as a short-term trend indicator.
“That move usually signals a shift from ‘buy-the-dip’ to ‘sell-the-rally,’” Olanrewaju said.
If the current setup holds, Ethereum could test support near $3,100, he added.
A decisive break below that level could expose the market to a move beneath the $3,000 psychological threshold, particularly if selling volume accelerates.
Still, Olanrewaju cautioned that the bearish outlook is not definitive.
“If buying pressure returns and ETH reclaims the 20 EMA, momentum could reset quickly,” he said.
In a bullish scenario, Ethereum could rally toward $3,942, with a sustained breakout potentially opening the door to an extension toward the $4,300 region, according to the report.
The post Tom Lee’s BitMine Nears ‘Alchemy of 5%’ Ethereum Goal — Is ETH Price in Trouble? appeared first on ccn.com.