BitMine Buys $1.5B In Ether As Tom Lee Remains Bullish On ETH

Fundstrat’s Tom Lee echoed the sentiment that the digital asset treasury hype may be coming to an end, but he remains bullish on Ethereum, having bought $1.5 billion worth since the market crash.

BitMine Immersion Technologies has acquired a total of 379,271 Ethereum (ETH) worth approximately $1.5 billion since the record cryptocurrency market liquidation event last weekend.

The acquisitions came in three separate purchases: 202,037 ETH after the weekend crash, 104,336 ETH on Thursday, and 72,898 ETH on Saturday. According to to onchain data from Arkham Intelligence and BMNR Bullz, which tracks the company’s purchases, although this has not been officially confirmed by BitMine.

BitMine is the world’s largest Ethereum treasury with a stock of over 3 million ETH, or 2.5% of the total supply, worth $11.7 billion. It is already halfway towards its 5% target and only started accumulating assets in early July, when ETH was hovering around the $2,500 level.

“Ethereum could upend Bitcoin similar to how Wall Street and stocks upended gold after ’71,” Lee told ARK Invest CEO Cathie Wood on Thursday, in his latest bullish statement on the asset.

Burst that bubble?

The continued strong accumulation of ether is occurring despite Lee’s opinion that the digital asset treasury bubble may have burst.

Many DATs are trading below their net asset value (NAV), or the value of their underlying cryptocurrency holdings, Lee said. “If this bubble hasn’t already burst… how will this bubble burst?” he He said Luck on Thursday.

Related to: NAV Collapse Creates Rare Opportunity in Bitcoin Vaults – 10x Research

Research firm 10x Research also reported on Saturday that major DATs such as Metaplanet and Strategy were trading near or below NAV.

However, it’s not all bad news, as DATs with strong capital bases and trading-savvy management teams “may still generate meaningful alpha,” they said.

Huobi’s founder, Li Lin, wants some of that alpha, and has reportedly raised about $1 billion as part of a strategy to invest in an ether treasury.

Gold envy keeps cryptocurrencies low

for me He said CNBC reported after trading on Friday that investors were still “licking their wounds” from the record influx of leverage, but there was also a bit of “gold envy” as the commodity had been a “huge performer this year.”

“This is not the top of the crypto cycle, but leveraged buys in crypto are near record lows, so I think (…) we are in the basement and working our way to the top.”

Cryptocurrency markets are currently down 15% from the record high reached on October 7, while gold prices are down almost 3% from their peak on Thursday.

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