BitMine has accumulated a staggering $1.5 billion worth of Ether since the recent market downturn, while Tom Lee maintains an optimistic outlook, expressing concerns over the potential bursting of the Digital Asset Treasury (DAT) bubble.
BitMine Immersion Technologies has purchased a total of 379,271 Ether (ETH) valued at nearly $1.5 billion following the liquidation event in the crypto market last weekend.
This purchasing spree occurred over three transactions: 202,037 ETH post-weekend crash, 104,336 ETH on Thursday, and 72,898 ETH on Saturday, based on on-chain data from Arkham Intelligence and BMNR Bullz. However, these figures have not yet been confirmed by BitMine.
Being the largest holder of Ether globally, BitMine possesses more than 3 million ETH, which is approximately 2.5% of the total supply worth around $11.7 billion. The company aims to reach a target of 5% of the total supply, having started to gather assets earlier this July when ETH was priced around $2,500.
“Ethereum could flip Bitcoin similarly to how Wall Street shifted from gold after 1971,” Lee remarked during an interview with ARK Invest CEO, Cathie Wood.
Concerns Over the DAT Bubble
Lee has noted that the aggressive gathering of Ether continues even as he suggests that the DAT bubble may be coming to an end. According to Lee, multiple DATs are trading below their net asset value (NAV), marking signs of a potential collapse of this segment.
“If that’s not already a bubble burst… How would that bubble burst?” Lee questioned during an interview with Fortune.
Research by 10x Research states that several major DATs, including Metaplanet and Strategy, are now trading at or beneath their NAV, but asserts that this scenario does not preclude the possibility for companies with solid financial backing to still deliver significant returns.
Huobi’s founder, Li Lin, is in pursuit of these potential gains and has reportedly raised about $1 billion to invest in an Ether treasury strategy.
Market Sentiment
Lee also spoke with CNBC following the trading day on Friday, expressing that investors are still recovering from recent market volatility, a sentiment he terms as “gold envy” due to gold’s remarkable performance this year.
“This isn’t the peak of the crypto cycle, but leveraged positions in crypto are nearing record lows, indicating we are currently at a low point.”
The cryptocurrency markets have fallen by 15% from their all-time high recorded on October 7, while gold prices have declined by nearly 3% from their recent peak.
