Will Bitmine reaching its 'alchemy of 5%' goal move Ethereum prices? | Source: CCN
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Key Takeaways
Bitmine now holds over 4% of Ethereum’s supply and is accelerating toward its “alchemy of 5%” target.
Tom Lee remains highly bullish on Ethereum.
Analysts say Ethereum’s near-term price direction will depend more on technical momentum.
Bitmine Immersion Technologies said it now holds just over 4% of Ethereum’s total supply, marking a new milestone in its aggressive accumulation strategy, raising questions about Chairman Tom Lee’s bullish price forecasts for the world’s second-largest crypto.
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As of April 12, Bitmine held 4,874,858 ETH, valued at roughly $2,206 per token, alongside a smaller Bitcoin position and equity stakes.
The recent purchase brought its Ethereum exposure to around 4.04% of the network’s 120.7 million circulating supply.
Lee publicly celebrated the milestone, calling it a step toward what he has described as the “alchemy of 5%” — a target he has regularly heralded as Bitmine’s key goal.
Congrats Bitmine team @BitMNR for reaching 4% of $ETH coin supply!!!
— Thomas (Tom) Lee (not drummer) FundstratDirect.com (@fundstrat) April 13, 2026
The company has accelerated purchases in recent weeks, acquiring more than 71,000 ETH in the past week alone, its fastest pace since late 2025.
At the same time, Bitmine has been expanding its staking operations, with roughly 3.3 million ETH — about 68% of its holdings — already deployed to generate yield.
What Is The ‘Alchemy of 5%’?
The 5% threshold is central to Bitmine’s strategy of turning its Ethereum treasury into a large-scale, income-generating asset base.
The company has been building out MAVAN, its institutional-grade staking platform, initially designed for internal use but intended to serve external clients including custodians and asset managers.
At scale, Bitmine expects staking to generate hundreds of millions of dollars in annual revenue, based on yields of around 2.7%–2.9%.
Lee has indicated that once Bitmine reaches roughly 5% of Ethereum’s supply, the company plans to pivot from aggressive accumulation toward monetization — focusing on staking income and deeper integration with institutional finance.
However, this has ignited some fear amongst skeptics, with some arguing that Ethereum could be hurt if its largest buyer suddenly stops accumulating.
On the other side, some have argued that allowing Bitmine to own such a large portion of ETH may undermine its decentralization.
Downplaying Centralization
Lee has regularly spoken out against concerns that BitMine’s 5% stake could lead to excessive influence over the 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.
Lee admitted that there was a point where an entity owning too much of a network could “actually have a negative effect because they’re crowding out innovation.”
But said his discussions showed “10% is actually still an acceptable level.”
“…because if you think about even in any competitive world, if someone has 10% of a system, they aren’t in control of it,” he said.
Bullish Price Predictions Back In Focus
The latest step closer to Bitmine’s alchemy of 5% has placed Lee’s myriad of bullish price predictions back in the limelight.
In recent months, Lee has pointed to Ethereum’s recent outperformance versus equities and gold as evidence of its emerging role as a “wartime store of value.”
In longer-term scenarios, Lee has outlined wide-ranging upside cases, including mass institutional adoption and AI agents.
Under a base assumption of Bitcoin reaching $250,000 and Ethereum trading at its historical ratio to BTC, he sees Ethereum rising to around $12,000.
More optimistic scenarios could imply significantly higher valuations if that ratio expands.
“We believe Ethereum is the future of finance,” he said. “It’s going to be a payment rail.”
Adding: “If Bitcoin gets to a million, that would value ETH at $250,000.”
Would Bitmine’s 5% Ethereum Ownership Move The Market?
Whether Bitmine reaching 5% of Ethereum supply would materially influence prices remains debated.
On one hand, continued large-scale purchases could tighten available supply and reinforce bullish sentiment, particularly if paired with increased staking that removes tokens from liquid circulation.
However, analysts say near-term price action hinges less on Bitmine’s accumulation alone and more on whether Ethereum can sustain its current technical breakout.
Abiodun Oladokun, an analyst at CCN, said Ethereum’s recent rally has pushed it above the key resistance zone around $2,145 — now trading at around $2,377.
“Trading above this level suggests buyers are in control, and the prevailing momentum is bullish,” Oladokun said.
Momentum indicators also point to strengthening upside pressure.
Ethereum’s Awesome Oscillator has climbed steadily in recent sessions, with expanding positive histogram bars.
“When the indicator shows positive values and growing green bars, it signals increasing bullish sentiment and that buyers are overpowering sellers,” he said.
If Ethereum maintains support above $2,123 and $2,145, Oladokun said the price could extend gains toward $2,380 and potentially $2,811, putting the $3,000 level “firmly back in play.”
Critics Question Lee’s Record
Lee’s latest comments come amid ongoing skepticism over his price forecasts, particularly after earlier short-term predictions failed to materialize.
He had previously projected Bitcoin reaching $180,000 and Ethereum trading between $7,000 and $9,000 by the end of January — targets that drew sharp criticism when markets fell short.
Some commentators accused him of overpromising, while others argued he should stick to making broader directional views rather than short-term calls.
“Called for $180,000 BTC and $7,000–$9,000 ETH by end of January,” one X user wrote at the time. “Reality with 48 hours left? That’s not a miss. That’s a hallucination.”
Longtime Bitcoin critic Peter Schiff has also regularly challenged Lee’s narratives, particularly around the relationship between gold and crypto markets.
After Lee argued that rising gold prices were bullish for Bitcoin, Schiff pushed back, saying the two assets historically competed rather than moved in tandem.
CNBC’s favorite Bitcoin shill @fundstrat claims a rising gold price is bullish for Bitcoin. But Bitcoin thrived when gold traded sideways, allowing it to steal gold’s thunder as the “better” inflation hedge and safe haven. Gold’s recent breakout destroys that false narrative.
“CNBC’s favorite Bitcoin shill claims a rising gold price is bullish for Bitcoin,” Schiff wrote on X in December.
“But Bitcoin thrived when gold traded sideways, allowing it to steal gold’s thunder as the ‘better’ inflation hedge and safe haven.”
Lee, however, has defended his outlook, maintaining that structural shifts — including institutional adoption — could still drive a significant rally in both bitcoin and Ethereum over time.
Kurt Robson is a London-based reporter at CCN, specialising in the fast-moving worlds of crypto and emerging technology. He began his career covering local news in Cornwall after graduating from Falmouth University with First Class Honours in Journalism. There, he cut his teeth on everything from council meetings to missing swans.
He quickly rose through the ranks to become a frontline journalist at several of the UK’s leading national newspapers. Over the years, he has interviewed musicians and celebrities, reported from courtrooms and crime scenes, and secured multiple front-page exclusives.
Following the upheaval of the COVID-19 pandemic, Kurt shifted his focus to technology journalism—just ahead of the AI boom. With a natural curiosity and a trained eye for emerging trends, he has found a new rhythm in reporting on innovation.
At CCN, Kurt's work focuses on the cutting edge of crypto, blockchain, AI, and the evolving digital world. Drawing on his background in people-first reporting and his deep interest in disruptive tech, Kurt delivers stories that are insightful, entertaining, and human-centric.
