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Fundstrat’s Tom Lee has reiterated the notion that the fervor surrounding digital asset treasuries might be reaching its conclusion, yet he maintains an optimistic outlook on Ether, having acquired $1.5 billion worth since the market downturn.
BitMine Immersion Technologies has amassed a total of 379,271 Ether (ETH) valued at nearly $1.5 billion following the unprecedented crypto market liquidation episode last weekend.
The purchases were made in three distinct transactions: 202,037 ETH after the weekend’s crash, 104,336 ETH on Thursday, and 72,898 ETH on Saturday, as per onchain data from Arkham Intelligence and ‘BMNR Bullz’, which monitors the company’s acquisitions, although this has not yet been officially verified by BitMine.
BitMine is the largest Ether treasury corporation globally, holding over 3 million ETH, which constitutes 2.5% of the total supply, valued at $11.7 billion. It is already halfway to its goal of 5% and only began accumulating the asset in early July, when ETH was around the $2,500 mark.
“Ethereum could surpass Bitcoin in a manner similar to how Wall Street and equities overtook gold after ’71,” Lee stated to ARK Invest CEO Cathie Wood on Thursday in his latest optimistic assertion regarding the asset.
DAT bubble burst?
The ongoing intensive purchase of Ether takes place despite Lee’s belief that the digital asset treasury bubble may have indeed burst.
Lee remarked that numerous DATs are operating below their net asset value (NAV), or the value of their underlying crypto assets. “If that’s not a bubble burst already… What would a bubble burst look like?” he told Fortune on Thursday.
Related: NAV Collapse Creates Rare Opportunity in Bitcoin Treasurys — 10x Research
Research organization 10x Research also noted on Saturday that significant DATs like Metaplanet and Strategy were trading close to or beneath their NAVs.
Nonetheless, this isn’t entirely negative news, as DATs with robust capital foundations and proficient management teams “might still generate significant alpha,” they stated.
Huobi founder Li Lin is eager for some of that alpha and has reportedly raised approximately $1 billion as part of an initiative to invest in an Ether treasury.
Gold envy holding crypto down
Lee informed CNBC after trading hours on Friday that investors were still “healing from their wounds” due to the historic leverage flush, but there was also a tinge of “gold envy” as the commodity has performed “remarkably this year.”
“This is not the peak of the crypto cycle, but leveraged longs in crypto are at near record lows, so I believe […] we’re at the bottom and making our way back up.”
Currently, crypto markets are down 15% from their peak on October 7, whereas gold prices have fallen nearly 3% from their high on Thursday.
Magazine: Ether’s price to go ‘nuclear,’ Ripple seeks $1B XRP buy: Hodler’s Digest
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