Fundstrat’s Tom Lee echoed the sentiment that the digital asset treasury hype may be coming to an end, but Ether remains bullish as $1.5 billion has been purchased since the market crash.
Since last weekend’s record-breaking cryptocurrency market liquidation, BitMine Immersion Technologies has raised a total of 379,271 Ether (ETH) worth almost $1.5 billion.
The takeovers included three separate transactions: 202,037 ETH after the weekend crash, 104,336 ETH on Thursday, and 72,898 ETH on Saturday. According to to onchain data from Arkham Intelligence and “BMNR Bullz” that track the company’s purchases, although this has not yet been officially confirmed by BitMine.
BitMine is the world’s largest Ether treasury holding over 3 million ETH, or 2.5% of the total supply, worth $11.7 billion. He is already halfway to his 5% target and only started accumulating assets in early July, when ETH was hovering around $2,500.
“Ethereum could reverse Bitcoin in much the same way that Wall Street and stocks reversed gold at 71,” Lee told ARK Invest CEO Cathie Wood on Thursday in his latest bullish statement on the asset.
Is this bubble bursting?
Ether’s continued aggressive accumulation comes despite Lee’s view that the digital asset’s Treasury bubble may have burst.
Lee stated that many DATs are trading below their net asset value (NAV) or the value of their underlying crypto holdings. “If this isn’t already a bubble bursting… How would this bubble burst?” He he said Fortune on Thursday.
Related: NAV Collapse Creates a Scarce Opportunity in Bitcoin Vaults – 10x Research
Research firm 10x Research also reported on Saturday that major DATs such as Metaplanet and Strategy were trading at or below their NAVs.
It’s not all bad news, however, as DATs with a forceful capital base and trading-experienced management teams “can continue to generate significant alpha,” they said.
Huobi founder Li Lin wants a piece of that alpha and has reportedly raised around $1 billion as part of an ether vault investing strategy.
Gold envy is holding cryptocurrencies back
Leeward he said However, after Friday’s trading day, as investors continued to lick their wounds after record levels of leverage, there was also a note of “gold envy” as the commodity “has performed outstandingly this year,” according to CNBC.
“It’s not the peak of the crypto cycle, but leveraged long positions in crypto are near record lows, so I think […] we’re in the basement and we’re going back upstairs.
Cryptocurrency markets are currently down 15% from their record high on October 7, while gold prices have retreated almost 3% since Thursday’s peak.
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