Tom Lee: Ethereum supply is in a “deflationary” state; Bitmine intentionally slowed its accumulation

Bitmine chairman Tom Lee said on X on May 12 that over the past year, Ethereum supply has remained in a deflationary (contraction) state, and continued buying and staking by crypto treasury companies have further amplified this trend. According to Bitmine’s disclosure on May 11, the company added 26,659 ETH to its holdings last week, significantly lower than the previous three consecutive weeks’ pace of adding more than 100,000 ETH per week.

Background of Bitmine’s Slower Accumulation and Its Holdings Structure

According to Bitmine’s disclosure, as of May 11, 2026, the company’s total ETH holdings were about 5,206,790 ETH. Valued at the then-current price, that was worth approximately $12.15 billion, making Bitmine the publicly listed company with the largest ETH holdings globally. In addition, the company held 201 Bitcoins, $200 million worth of Beast Industries shares, and $775 million in cash. Total crypto assets and cash holdings amounted to $13.4 billion. Since the beginning of 2026, Bitmine has cumulatively added more than 1 million ETH.

Tom Lee said the company intentionally reduced its accumulation pace: “We decided to slow down our weekly accumulation speed from more than 100,000 ETH per week. At our previous accumulation pace, by mid-July our accumulation ratio would reach 5%.” Based on Bitmine’s disclosure, the company’s original goal was to reach a target of holding 5% of Ethereum’s circulating supply by the end of 2026. However, the aggressive accumulation progress meant the target could be achieved several weeks earlier, prompting the company to reassess its timing.

Staking Strategy and Annualized Returns

According to Bitmine’s disclosure, as of May 11, 2026, the company had staked 4,712,917 ETH, accounting for more than 90% of its total holdings. Estimated using a 7-day average yield of 2.86%, the annualized staking return was about $319 million, the largest ETH staking scale among publicly listed companies worldwide.

MAVAN, the staking platform launched by Bitmine in early 2026, is designed to provide staking services to institutional clients alongside the company’s own capital operations.

Tom Lee’s Outlook on the Ethereum Market

In comments on the X platform, Tom Lee reiterated his view that the “crypto spring” has already begun, and cited a recent rebound in the price of ether. Lee said: “If ether’s closing price at the end of May is higher than $2,100, that would mark the third consecutive month of gains. This has never happened in a crypto bear market.”

In his statement, Tom Lee said the two main drivers for Ethereum’s future development are: Wall Street’s continued shift toward tokenization, and the rise of smart AI systems that rely on public blockchains for payments and verification.

FAQ

What is Tom Lee’s basis for the deflationary trend in Ethereum supply?

According to Tom Lee’s statement on X on May 12, 2026, over the past year, Ethereum supply has continued to be in a deflationary (contraction) state, and continued buying and staking activities by crypto treasury companies have further reinforced this trend.

Why did Bitmine slow down accumulation when its holdings approached the 5% target?

Based on Tom Lee’s statement and Bitmine’s disclosure, the company originally planned to reach its goal of holding 5% of circulating supply by the end of 2026. However, the aggressive accumulation pace meant the target could be met by mid-July, so the company proactively cut back its weekly purchase cadence.

What are Bitmine’s ETH staking size and annualized returns?

According to Bitmine’s disclosure on May 11, 2026, the company has staked 4,712,917 ETH, accounting for more than 90% of its total holdings. Estimated using a 7-day average yield of 2.86%, the annualized staking return is about $319 million, the largest ETH staking scale among publicly listed companies globally.