BitMine Buys 379,000 ETH After Record Market Crash, Tom Lee Says Ethereum Could Overtake Bitcoin Despite DAT Decline
BitMine Invests $1.5 Billion in Ether, Tom Lee Predicts Flippening
BitMine Immersion Technologies has purchased about 379,271 Ether (ETH) worth nearly $1.5 billion after a record-breaking crypto market selloff last weekend, according to Arkham Intelligence. The purchases came in three phases: 202,037 ETH after the market crash, 104,336 ETH on Thursday, and 72,898 ETH on Saturday.
As a result, BitMine, the world’s largest holder of ETH vaults, now controls over 3 million ETH, or 2.5% of the total supply. Its goal is to accumulate 5% of the market, and it is already halfway there, having only started accumulating in July when Ethereum was trading around $2,500.
Tom Lee: Ethereum Could Outperform Bitcoin
Analyst Tom Lee (Fundstrat), who remains bullish on Ethereum, said in a conversation with ARK Invest CEO Katie Wood that “Ethereum could repeat the way Wall Street stocks outperformed gold after 1971.”
Despite the general decline in interest in Digital Asset Treasuries (DAT), Lee has personally increased his position in Ether, joining large institutions that see it as a long-term opportunity.
DAT “bubble” has begun to deflate
Lee acknowledged that “the hype around DAT seems to be coming to an end,” noting that many such funds are now trading below their net asset value (NAV).
“If this isn’t a bubble bursting, then what is?” — he said in an interview with Fortune.
According to 10x Research, large DATs — including Metaplanet and Strategy — are indeed trading at or below their NAV. However, analysts believe that funds with a strong capital base and active management can continue to generate returns, even in difficult market conditions.
Institutional demand is returning
Huobi founder Li Lin recently raised $1 billion for an Ether vault, confirming that corporate interest in ETH remains strong. Analysts believe that such accumulations are forming a new “super cycle strategy” for Ethereum, where large funds accumulate tokens at rock bottom levels.
“This is not the top of the cycle”
In a commentary for CNBC, Tom Lee noted that investors are “still recovering from a record liquidation week,” but the market is already at the bottom and ready to recover.
“We are in the recovery phase from the bottom. This is not the end of the cycle, but a new beginning,” Lee said, adding that “gold envy” should not overshadow the potential of cryptocurrencies.
According to CoinGlass, the crypto market is currently 15% down from its record high on October 7, while gold has lost about 3% from last week’s peak.
And while the “DAT hype” may be fading, BitMine’s actions and Lee’s words suggest otherwise — Ethereum is entering a strategic accumulation phase where fundamental players are preparing for the next big cycle.
