BitMine Gathers $1.5B in Ether Despite Concerns Over Digital Asset Treasuries

BitMine has accumulated $1.5 billion in Ether following the recent market downturn, while Tom Lee maintains an optimistic stance despite expressing concerns about the potential end of the digital asset treasury bubble.

BitMine Immersion Technologies acquired 379,271 Ether (ETH) in total since the significant market liquidation last weekend. This was done across three separate transactions: 202,037 ETH bought after the crash, 104,336 ETH on Thursday, and 72,898 ETH on Saturday, as reported by Arkham Intelligence and the account ‘BMNR Bullz’, which tracks these purchases.

According to reports, BitMine holds over 3 million ETH, which is about 2.5% of the entire supply, equating to a value of $11.7 billion. The firm aims to reach 5% of the total supply and began accumulating Ether in July when prices were around $2,500.

Tom Lee mentioned during a recent conversation, “Ethereum could flip Bitcoin similar to how Wall Street and equities flipped gold post 71,” pointing to Ether’s potential rise in comparison to Bitcoin.

Is the DAT Bubble Bursting?

Even as Lee continues to accumulate Ether, he has suggested that the hype around digital asset treasuries might be waning. He indicated that many Digital Asset Treasures (DATs) are being traded below their net asset value (NAV), signaling potential bubble conditions. He raised a valid query, asking, “If this is not already a bubble burst… when would it burst?”

Research firm 10x Research corroborated Lee’s insights by indicating that some major DATs, like Metaplanet and Strategy, are trading near or below their NAVs. However, they added that firms with strong capital bases and adept management could still see positive returns.

Huobi’s Li Lin is also looking to leverage that potential and has reportedly raised around $1 billion to invest in an Ether treasury.

Gold Envy Restraining Crypto Values

Lee commented on CNBC that the market still feels the aftermath of the unprecedented leverage flush, likening the situation to “gold envy” due to gold’s impressive performance recently.

“This is not the top of the crypto cycle, but leveraged longs in crypto are at record lows, so I believe we’re at the bottom and beginning to recover.”

Currently, the crypto market is down 15% from its peak in earlier October, contrasting with a near 3% reduction in gold prices recently.

Tom Lee speaking on CNBC on Friday. Source: YouTube