Tom Lee Doubles Down on Ethereum as DAT Bubble Fears Surge

Tom Lee, chair of BitMine Immersion Technologies, has made a dramatic move by purchasing nearly $1.5 billion worth of Ethereum (ETH) amid his public declaration that the digital asset treasury (DAT) bubble has burst.

This aggressive accumulation positions BitMine as the world’s largest Ether treasury holder with over 3 million ETH, representing roughly 2.5% of the total supply.

The purchases were executed in three waves following a sharp crypto market crash last weekend: 202,037 ETH immediately after the crash, 104,336 ETH on Thursday, and 72,898 ETH on Saturday.

Despite the crash and Lee’s acknowledgment of the bursting bubble, BitMine aims to reach ownership of 5% of Ethereum’s circulating supply, having started its accumulation phase when ETH was around $2,500.​

Bubble Burst but Bullish on Ethereum

Lee expressed his skepticism toward the state of digital asset treasuries, many of which are trading below their net asset values (NAV), indicating a clear correction in what was once seen as a hype sector.

“If that’s not already a bubble burst… How would that bubble burst?” he said in an interview with Fortune.

Research supports this claim, with reports revealing major DATs such as Metaplanet and Strategy trading at or below their NAVs.

Yet, Lee believes this correction is part of a necessary rebalancing, warning that while many firms are struggling, those with strong management and capital bases can still generate significant returns.

While many investors have been cautious, Lee remains optimistic about Ethereum’s future.

He even suggested Ethereum could outpace Bitcoin in market significance, likening it to how equities overtook gold as dominant investment post-1971.

Huobi founder Li Lin has also raised about $1 billion to join the Ether treasury investment trend, signaling continued institutional interest.​

Crypto Markets Face “Gold Envy”

Despite recent gains by cryptocurrencies, the market has been weighed down by what Lee calls “gold envy.”

The precious metal has been a major performer this year, drawing some investor attention away from crypto.

Lee noted leveraged longs in crypto markets are near record lows, indicating the market has bottomed and is preparing for a rebound.

Recent market activity shows cryptocurrencies down about 15% from their all-time high on October 7, while gold prices have only retreated slightly.

Lee’s strategy to double down on Ethereum during this downturn contrasts with many cautious investors, highlighting BitMine’s confidence in the digital asset’s long-term potential.