Tom Lee Dismisses Ethereum Price Drop, Citing Strong Fundamentals
Despite the recent plunge in Ethereum prices, Tom Lee believes the fundamentals remain robust, as BitMine continues its acquisitions.
Ethereum’s (ETH) price fell significantly over the weekend, dropping from approximately $2,900 to around $2,100 due to increased selling pressure. Although it has shown slight stabilization, it remains down over 26% in the past month.
Tom Lee, the head of research at Fundstrat, has stated that this decline should not be attributed to weakening Ethereum fundamentals but rather to a lack of leverage in the market and a rise in gold prices.
Continued Accumulation
BitMine, a key player in Ethereum treasury, has been actively accumulating ETH amidst this price decline. According to Lee, who also holds the position of chairman at the firm, the current price levels are “attractive” due to strengthening fundamentals within the network.
Lee remarked,
“BitMine has been steadily buying Ethereum, as we view this pullback as attractive, given the strengthening fundamentals. In our view, the price of ETH is not reflective of the high utility of ETH and its role as the future of finance.”
The steep drop in the crypto asset’s price comes despite Ethereum achieving a record daily transaction rate of 2.5 million and reaching an all-time high of 1 million active addresses each day during 2026. Lee compared this scenario with previous downturns in the crypto market, indicating that this price weakness is driven by external factors instead of intrinsic weaknesses in the Ethereum market, highlighting subdued leverage and increased interest in precious metals.
Recent reports suggested that BitMine is dealing with over $6.9 billion in unrealized losses related to its Ethereum holdings.
Stability and No Urgency to Sell
On February 2, BitMine claimed a total in crypto and investment assets amounting to $10.7 billion, which included 4,285,125 ETH, 193 BTC, and a notable stake in Beast Industries valued at $200 million. Lee emphasized that the firm is not under any pressure to liquidate ETH given its absence of debt covenants and significant cash reserves.
As of February 1st, BitMine had staked 2,897,459 ETH worth around $6.7 billion, reflecting an increase from 408,627 ETH at the end of December 2024. In line with current capitalization strategies, BitMine has been working with three staking providers as it prepares for the launch of its MAVAN validator network in 2026, acquiring an additional 41,788 ETH just last week.
