Tom Lee Says BitMine Holds 3% of Ethereum — What Happens When It Reaches 5%?

Core Insights - BitMine, chaired by Tom Lee, now holds 3% of the total Ethereum supply after acquiring 69,822 ETH in the past week, raising concerns about the implications for Ethereum's decentralization and future [1][2][3] Company Holdings - BitMine's current holdings include 3,629,701 ETH valued at $2,840 per token, 192 Bitcoin (BTC), a $38 million stake in Eightco Holdings (NASDAQ: ORBS), and $800 million in unencumbered cash [4][5] Accumulation Strategy - BitMine aims to reach a target of 5% of the total Ethereum supply, referred to as "The Alchemy of 5%," which could unlock significant staking revenue and enhance integration with institutional finance [6][7] - The company could potentially earn a 2.79% pre-tax yield on its ETH positions once it launches a company-run staking solution [6][7] Decentralization Concerns - Despite the aggressive accumulation strategy, Tom Lee believes that ownership levels up to 10% would not threaten Ethereum's decentralization, citing internal research and discussions with analysts [7][8]