Tom Lee’s Bitmine Slows ETH Buys, Prioritizes $86M Stock Buyback
Tom Lee’s Bitmine bought less ether last week, then put $86 million into repurchasing its own shares. That looks like a new phase in the company’s crypto treasury strategy. My take: it removes some short-term demand from the Ethereum market, but $86 million alone is unlikely to determine where ether goes next.
Bitmine (BMNR), the largest Ethereum treasury company, bought 7,430 ether ($ETH) last week. At the current price of $1,879, those tokens were worth about $14 million. In an update published Monday, the company said it now holds 5.78 million $ETH, roughly 4.8% of Ethereum’s circulating supply. BMNR rose 2.4% in pre-market trading after the announcement. The market noticed.
It was one of Bitmine’s smallest weekly purchases since the company launched its Ethereum treasury strategy in June 2025. The contrast is hard to miss: during one week in May, Bitmine bought more than 111,000 $ETH, while purchases regularly reached the tens of thousands during the first half of the year. Why slow down now? Because the company is nearing its goal of owning 5% of the circulating supply, making a slowdown likely sooner or later.
Chairman Thomas “Tom” Lee tied the smaller ether purchase directly to Bitmine’s repurchase of about 5.5 million shares. The company paid an average of $15.62 per share through its approved $4 billion buyback program. “The reduced pace of buys reflects that Bitmine repurchased 5.5 million common shares,” Lee said. He added that Bitmine has purchased $ETH every week since adopting the treasury strategy a little over a year ago. That distinction is important.
Most takes will frame this as Bitmine backing away from Ethereum. That’s only half right. Bitmine still owns nearly 5% of all circulating ether. I’ll be honest: spending $86 million on BMNR shares instead of another large block of $ETH does show that management is balancing its crypto goal against shareholder returns. Yet the 2.4% pre-market rise suggests stock investors were comfortable with that choice, at least initially.
Other companies may notice. MicroStrategy (MSTR) made its name by holding Bitcoin as its main treasury asset; Bitmine tied its identity to ether. This time, though, Bitmine judged its own shares to be the better buy. Counter to the usual assumption, corporate crypto purchases do not have to continue mechanically forever. They may become less routine as a company approaches its target. A more attractive use of cash can interrupt the schedule, too.
Bitmine reported $11.5 billion in total holdings as of Sunday. Its assets included its large $ETH position and 207 bitcoin. It also held $385 million in cash and marketable securities. Beyond those holdings, the company had a $180 million stake in Beast Industries and a $58 million investment in Eightco Holdings.
Meanwhile, Bitmine is earning money from the ether it already owns. About 4.92 million $ETH, or 85% of its holdings, is staked through the MAVAN platform, and the company expects that stake to produce about $247 million in annual revenue. Is buying less ether necessarily bearish? No. With the existing treasury generating cash, management can reduce purchases without stepping away from Ethereum. Buying every available token may simply be less compelling now.
From a macro flow perspective, the buyback is fairly straightforward. Management may believe BMNR shares are undervalued. Or it may simply consider them more attractive than the alternatives, including additional ether. My read is that $ETH bulls will dislike that comparison more than the actual numbers justify. Bitmine has not sold its holdings.
For now, there is less buying pressure. If other large corporate holders redirect money toward share repurchases, demand for $ETH and $BTC could weaken slightly. Crypto prices often react quickly when institutional flows change, particularly after traders become accustomed to the same large buyer returning every week. Still, context matters. Redirecting $86 million into BMNR stock is significant for Bitmine, but it remains one company’s decision. It is not proof that the broader market is pulling back.
What this means
Bitmine may be moving from aggressive accumulation into position maintenance. The company remains committed to its ether treasury and staking business, while the buyback gives management another priority as it approaches the 5% supply target. Yes, that sounds less bullish than the earlier buying spree. It is. But a major Ethereum buyer has slowed down; it has not left.
That difference matters. Smaller Bitmine purchases could remove a source of consistent support for $ETH over the next few months. They do not guarantee a price decline. Market mood and exchange flows may matter more. Protocol updates and purchases by other institutions could outweigh Bitmine as well. In my view, traders should stop assuming that the company will keep buying at its previous pace.
Investors should watch whether other public companies with large crypto holdings make the same choice. A similar move by MicroStrategy (MSTR), for instance, would have more impact than one slow week at Bitmine. For $ETH, the $1,800 support area is worth watching. Is that level decisive by itself? No. A sustained drop below it could indicate softer demand, though no single price level provides a complete picture.
Bitmine’s next quarterly reports should clarify what the company plans to do after reaching its 5% target. Management’s comments about future purchases will matter. So will results from the staking business and its expected $247 million in yearly revenue. My guess is that ether’s next big move will come from the broader market or a protocol upgrade, not from Bitmine sticking to its old buying schedule.