In a bold display of confidence amid cryptocurrency’s latest volatility, BitMine Immersion Technologies has acquired nearly $1.5 billion worth of Ethereum (ETH) in the wake of a massive market liquidation event, on-chain data reveals. The purchases, totaling 379,271 ETH across three transactions, come as BitMine’s Chairman Tom Lee issues a stark warning about a potential “bubble” in the digital asset treasury sector—while doubling down on his bullish outlook for crypto’s future.
The acquisitions—202,037 ETH immediately following last weekend’s crash, followed by 104,336 ETH on Thursday and 72,898 ETH on Saturday—have not yet been officially confirmed by the company. However, blockchain analytics firm Arkham Intelligence and tracking service ‘BMNR Bullz’ have verified the on-chain activity, pegging the total value at approximately $1.5 billion at current prices.
BitMine, already the world’s largest Ethereum treasury holder with over 3 million ETH (about 2.5% of the total supply, valued at $11.7 billion), is now halfway to its ambitious goal of controlling 5% of Ethereum’s circulating supply. The firm began its aggressive accumulation spree in early July, when ETH traded around $2,500, and has since positioned itself as a key institutional player in the space.
This latest haul underscores BitMine’s strategy of leveraging market dips for long-term gains, drawing parallels to MicroStrategy’s pioneering Bitcoin accumulation under CEO Michael Saylor. “We’re essentially a liaison between how Wall Street views future upgrades to Ethereum,” Lee told Fortune in a recent interview, highlighting benefits like staking rewards and inclusion in major stock indexes.
Lee’s Mixed Signals: Bubble Burst or Crypto Supercycle?
Yet, even as BitMine loads up on ETH, Lee—the Fundstrat Global Advisors co-founder and renowned crypto bull—has cautioned that the broader hype around digital asset treasuries (DATs) may be deflating. In an appearance on Fortune’s Crypto Playbook podcast earlier this week, Lee declared that the $162 billion DAT sector’s “bubble has burst,” pointing to the fact that around 80% of these publicly traded vehicles are now trading below their net asset value (NAV).
“If that’s not already a bubble burst, how would that bubble burst?” Lee quipped, noting the irony of companies valued less than the cryptocurrencies they hold. The remarks followed a record $19 billion liquidation in crypto derivatives last weekend—the largest on record—triggering widespread sell-offs and exposing vulnerabilities in high-leverage positions.
Lee’s critique targets the proliferation of DATs chasing everything from Bitcoin to altcoins like Worldcoin, many of which he says fail to create shareholder value. He contrasted this with dominant players like BitMine and MicroStrategy (which he referred to as “Strategy”), which together account for 86% of DAT trading volume and billions in daily activity.
Despite the sector-wide red flags, Lee’s Ethereum enthusiasm remains undimmed. Speaking to ARK Invest CEO Cathie Wood on Thursday, he predicted ETH could “flip Bitcoin similar to how Wall Street and equities flipped gold post ’71,” envisioning a “supercycle” fueled by AI integration and blockchain’s role in traditional finance. “Ethereum is entering a supercycle driven by artificial intelligence and financial sector blockchain integration,” Lee emphasized, aligning BitMine’s moves with this thesis.
Market Reactions and Broader Implications
The news has rippled through crypto circles, with Ethereum’s price hovering around $3,900 amid a tentative rebound from last week’s lows. Bitcoin, meanwhile, dipped below $107,000, reflecting ongoing jitters over trade tariffs and macroeconomic pressures. BitMine’s stock rose 4.35% in after-hours trading following earlier disclosures of its holdings surpassing $12.5 billion.
Analysts see BitMine’s purchases as a vote of confidence in ETH’s resilience, especially as institutional interest surges. Huobi founder Li Lin, for instance, reportedly raised $1 billion for an ETH-focused treasury fund, while backers like ARK’s Cathie Wood, Founders Fund, and Galaxy Digital continue to support Ethereum’s ecosystem.
Critics, however, warn that Lee’s dual role—criticizing the DAT bubble while leading its largest proponent—highlights risks of overconcentration. “The contradiction reflects a nuanced position: while many DATs face valuation challenges, scale advantages may allow survivors to thrive in consolidation,” noted a 10x Research report.
As the crypto market rebuilds, Lee’s words serve as both caution and catalyst. With BitMine’s treasury now rivaling nation-state reserves, the question lingers: Is this the burst of a bubble, or the dawn of Ethereum’s dominance?
Neither BitMine nor Fundstrat responded to requests for comment by press time. Ethereum traded at $3,920 as of 2:00 PM ET.