BitMine has successfully accumulated 1.5 billion dollars in Ether following the recent market downturn, as Tom Lee remains optimistic despite voicing concerns regarding a potential downturn in the digital asset treasury market.
BitMine Immersion Technologies has acquired a total of 379,271 Ether (ETH), valued at almost $1.5 billion since last weekend’s notable liquidation event in the crypto market. The purchases were made in three distinct transactions: 202,037 ETH post-weekend crash, 104,336 ETH on Thursday, and 72,898 ETH on Saturday. These details have been tracked by Arkham Intelligence and ‘BMNR Bullz,’ although BitMine has not yet confirmed them officially.
Ranking as the world’s largest Ether treasury company, BitMine holds more than 3 million ETH, equivalent to 2.5% of the total supply, worth approximately 11.7 billion dollars. The company’s ambitious target is to reach 5% of the total Ether supply, having only begun this accumulation strategy in early July, during which time ETH was priced around $2,500.
“Ethereum could surpass Bitcoin in a manner similar to Wall Street flipping gold post-1971,” Lee stated to ARK Invest CEO Cathie Wood, reinforcing his bullish perspective on the asset.
Concerns Over the Digital Asset Treasury Bubble
Despite the aggressive purchasing of Ether, Lee expressed skepticism about whether the digital asset treasury bubble has indeed burst, noting that many digital asset treasuries (DATs) are trading below their net asset value (NAV).
“If that’s not already a bubble burst… How would that bubble burst?” he queried during an interview with Fortune.
Research firm 10x Research noted that significant DATs, including Metaplanet and Strategy, are trading close to or beneath their NAVs. However, they emphasized that DATs with solid capital foundations and adept management may still yield strong returns.
Li Lin, founder of Huobi, seeks to capitalize on these opportunities, reportedly raising about 1 billion dollars to invest in an Ether treasury strategy.
The Influence of Gold on Crypto Markets
Lee also commented to CNBC that investors are still recovering from recent market losses, noting a sentiment of “gold envy” due to gold’s strong performance this year.
“This is not the top of the crypto cycle, but leveraged longs in crypto are near record lows, so I think […] we’re at the basement and working our way back up.”
Currently, the cryptocurrency markets are down 15% from their peak in early October, while gold prices have experienced a rebound, decreasing nearly 3% from their height earlier in the week.
