Fundstrat’s Tom Lee believes the hype around digital asset treasuries (DATs) may be waning, but his optimism toward Ether remains strong.
According to on-chain data, BitMine Immersion Technologies has purchased around 379,271 Ether (ETH), worth nearly $1.5 billion, since last weekend’s record crypto market crash.
The company’s recent acquisitions were made across three transactions: 202,037 ETH following the crash, 104,336 ETH on Thursday, and another 72,898 ETH on Saturday, as reported by Arkham Intelligence and tracker “BMNR Bullz.” While BitMine has yet to confirm the figures publicly, data indicates the firm has been highly active in accumulating Ether throughout the recent downturn.
BitMine is currently the largest Ether treasury holder globally, possessing over 3 million ETH — equivalent to about 2.5% of the total supply — valued at around $11.7 billion. Having only started buying in July, when ETH traded near $2,500, the company has already reached half its goal of controlling 5% of the supply.
“Ethereum could flip Bitcoin similar to how Wall Street and equities flipped gold post 71,” Lee said during a discussion with ARK Invest CEO Cathie Wood on Thursday.
DAT Valuations Under Pressure
Despite the significant buying, Lee has suggested that the broader DAT market could be showing signs of fatigue.
He noted that several DATs are currently trading below their net asset value (NAV), meaning the market price of these entities is less than the value of the crypto they hold. “If that’s not already a bubble burst… How would that bubble burst?” Lee remarked in an interview with Fortune.
Research firm 10x Research also pointed out that major DATs, including Metaplanet and Strategy, are trading at or below their NAV. However, it added that firms with strong balance sheets and experienced management teams may still be able to “generate meaningful alpha.”
Huobi founder Li Lin has reportedly raised about $1 billion to launch his own Ether-focused treasury, signaling that investor appetite for institutional-level ETH exposure remains intact.
Gold’s Strength Adds Pressure to Crypto
In an interview with CNBC on Friday, Lee explained that many investors are still recovering from the recent market crash, calling it a period where they are “licking their wounds.”
He also said the crypto market is facing a case of “gold envy,” with the precious metal outperforming digital assets 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,” Lee added.
Currently, the broader crypto market is down roughly 15% from its all-time high reached on October 7, while gold prices have declined about 3% from their recent peak.
