Fundstrat’s Tom Lee has echoed the sentiment that digital asset treasury hype could also be coming to an finish, however stays bullish on Ether, having bought $1.5 billion value for the reason that market crash.
BitMine Immersion Applied sciences has scooped up a complete of 379,271 Ether (ETH) value nearly $1.5 billion for the reason that document crypto market liquidation occasion final weekend.
The acquisitions got here in three separate purchases: 202,037 ETH after the weekend crash, 104,336 ETH on Thursday, and 72,898 ETH on Saturday, in line with onchain knowledge from Arkham Intelligence and ‘BMNR Bullz’, which tracks the agency’s purchases, although it has but to be formally confirmed by BitMine.
BitMine is the world’s largest Ether treasury firm with a stash of greater than 3 million ETH, or 2.5% of your complete provide, value $11.7 billion. It’s already midway towards its goal of 5% and has solely began accumulating the asset in early July, when ETH was hovering across the $2,500 degree.
“Ethereum might flip Bitcoin much like how Wall Avenue and equities flipped gold put up 71,” Lee advised ARK Make investments CEO Cathie Wooden on Thursday in his newest bullish assertion on the asset.
DAT bubble bursting?
The continued aggressive accumulation of Ether happens regardless of Lee’s opinion that the digital asset treasury bubble could have burst.
Lee acknowledged that many DATs are buying and selling beneath their web asset worth (NAV), or the price of their underlying crypto holdings. “If that’s not already a bubble burst… How would that bubble burst?” he advised Fortune on Thursday.
Analysis agency 10x Analysis additionally reported on Saturday that main DATs reminiscent of Metaplanet and Technique had been buying and selling close to or beneath their NAVs.
Nonetheless, this isn’t all dangerous information as DATs with robust capital bases and trading-savvy administration groups “should generate significant alpha,” they mentioned.
Huobi founder Li Lin needs a few of that alpha and has reportedly raised about $1 billion as a part of a method to spend money on an Ether treasury.
Gold envy protecting crypto down
Lee advised CNBC after the buying and selling day on Friday that traders had been nonetheless “licking their wounds” from the document leverage flush, however there was additionally a little bit of “gold envy” because the commodity has been a “large performer this 12 months.”
“This isn’t the highest of the crypto cycle, however leveraged longs in crypto are close to document lows, so I feel […] we’re on the basement and dealing our approach again up.”
Crypto markets are presently down 15% from their document excessive on October 7, whereas gold costs have retreated nearly 3% from their peak on Thursday.
Tom Lee talking on CNBC on Friday. Supply: YouTube
