Fundstrat’s Tom Lee Says Treasury Hype Fades, However Backs $1.5B Ether Purchase

Fundstrat’s Tom Lee believes the latest pleasure round digital asset treasuries (DATs) is cooling, however his confidence in Ethereum stays agency.

Key Takeaways:

• Fundstrat’s Tom Lee stays bullish on Ethereum, buying $1.5 billion value of ETH.
• BitMine Immersion Applied sciences mirrored the transfer, shopping for 379,000 ETH value $1.5 billion.
• Lee warned that many DATs at the moment are buying and selling beneath their internet asset worth, signaling a potential bubble burst.

The veteran strategist revealed that he bought $1.5 billion value of Ether following final weekend’s market crash, doubling down on what he sees as a long-term alternative, he stated in an interview with Fortune.

BitMine Accumulates 379,000 ETH Price $1.5B

In keeping with on-chain information from Arkham Intelligence, Bitcoin mining agency BitMine Immersion Applied sciences made the identical transfer, accumulating 379,271 ETH value roughly $1.5 billion throughout three main purchases over the week.

The transactions included 202,037 ETH acquired proper after the market liquidation, adopted by 104,336 ETH on Thursday and one other 72,898 ETH on Saturday.

Whereas BitMine has not but confirmed the transactions, monitoring account “BMNR Bullz” reported constant pockets exercise linked to the corporate.

BitMine has rapidly turn into the most important Ether treasury holder, now sitting on greater than 3 million ETH, or about 2.5% of the overall provide, valued at round $11.7 billion.

The agency started accumulating the asset in early July when costs have been close to $2,500, and it goals to ultimately management 5% of all Ether in circulation.

Talking with ARK Make investments CEO Cathie Wooden, Lee in contrast Ethereum’s potential to how Wall Avenue transitioned from gold to equities after 1971.

“Ethereum might flip Bitcoin just like how Wall Avenue and equities flipped gold put up ’71,” he stated, suggesting Ether might turn into the dominant retailer of worth within the subsequent market cycle.

Nevertheless, Lee additionally acknowledged rising cracks within the DAT market. He famous that many digital asset treasury corporations at the moment are buying and selling beneath their internet asset worth (NAV), implying traders have begun to cost within the dangers of overvaluation.

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

Analysis from 10x Analysis helps this view, declaring that corporations like Metaplanet and Technique are buying and selling at or beneath their NAVs.

But, the report added that well-capitalized DATs with skilled administration might nonetheless outperform within the subsequent section of the cycle.

Huobi Founder Li Lin Raises $1B With Companions to Accumulate Ethereum

In the meantime, Huobi founder Li Lin has reportedly raised $1 billion to launch an Ether-focused treasury fund.

Li, who additionally chairs Avenir Capital, is working alongside Shen Bo, co-founder of Fenbushi Capital; Xiao Feng, chairman and CEO of HashKey Group; and Cai Wensheng, the founding father of photo-editing app Meitu Inc. and one in all China’s most distinguished crypto traders.

The group plans to construction the Ether belief by a Nasdaq-listed shell firm, offering a regulated framework for institutional participation.

The challenge has already raised about $1 billion, together with $500 million from HongShan Capital Group (previously Sequoia China) and $200 million from Li’s Avenir, in line with the individuals, who requested to not be recognized as a result of discussions stay non-public.

The put up Fundstrat’s Tom Lee Says Treasury Hype Fades, However Backs $1.5B Ether Purchase appeared first on Cryptonews.