Fundstrat’s Tom Lee echoed the sentiment that the digital asset Treasury Hype may be over, but remains bullish on ether, having bought $1.5 billion worth since the market crash.
Bitmine immersion technologies have scooped up a total of 379,271 ether (Eth) worth almost $ 1.5 billion from the record crypto market Liquidation Event Last weekend.
The acquisitions came in three separate purchases: 202,037 ETH after the weekend crash, 104,336 ETH on Thursdayand 72,898 ETH on Saturday, according onchain data from Arkham Intelligence and ‘BMNR Bullz’, which track the firm’s purchases, although Bitmine has not yet officially confirmed this.
Bitmine is the largest ether company in the world with a stash of more than 3 million ETH, or 2.5% of the entire supply, worth $ 11.7 billion. It is halfway towards its target of 5% and only started to accumulate assets in early July, when ETH was hovering around the $2,500 level.
“Ethereum could flip bitcoin similar to how Wall Street and Equities flipped gold post 71,” Lee said Ark Invest CEO Cathie Wood on Thursday in her latest bullish statement on the asset.
Did that bubble burst?
The continuous aggressive The accumulation of ether is happening despite Lee’s opinion that the Treasury’s digital asset bubble may burst.
Lee said many DATs are trading below their net asset value (NAV), or the value of their underlying crypto holdings. “If that wasn’t a bubble burst … how did that bubble burst?” he said Fortune on Thursday.
Related: Collapse of nav creates rare opportunity in Bitcoin Treasurys – 10x Research
Research Firm 10X Research also reported on Saturday that major dats like Metaplanet and Strategy are trading near or below their NAVs.
However, it’s not all bad news as DATs with strong capital bases and trading-savvy management teams “can still generate significant alpha,” they said.
Huobi founder Li Lin wanted some of that alpha and has reported Raised about $ 1 billion as part of a strategy to invest in an ether treasury.
The gold envy that keeps crypto alive
Lee said CNBC after the trading day on Friday that investors are “licking their wounds” from the record leverage flush, but there is also some “gold envy” because the commodity has been a “big performer this year.
“It’s not the top of the crypto cycle, but leveraged longs in crypto are near record lows, so I think (…) we’re in the basement and working our way up.”
Crypto markets are currently down 15% from their record high on October 7, while Gold prices retreated nearly 3% from their peak on Thursday.
Magazine: Ether’s price to go ‘nuclear,’ Ripple seeks $1B XRP Buy: Hodler’s Digest
