Tom Lee 'Buys the Dip' with 60,000 ETH... "Ethereum Below $2,200 is an Opportunity"

▲ Ethereum (ETH)/ChatGPT Generated Image

Bitmine, led by Tom Lee, is reported to have additionally purchased 60,000 ETH (Ethereum) in the last 24 hours. With the price of Ethereum falling below $2,200, Bitmine aggressively pushed its Ethereum treasury strategy by increasing its holdings to over 5.33 million ETH.

CoinGape reported, citing on-chain analytics platform Onchain Lens, that a wallet potentially linked to an Ethereum treasury firm withdrew 60,000 ETH from Bitgo and cryptocurrency exchange Kraken. The value of this amount was tallied at $126 million. Following this additional purchase, Bitmine's Ethereum holdings exceeded 5.33 million ETH.

This purchase follows Bitmine's announcement earlier this week of a $154 million Ethereum acquisition. The company currently holds over 4.3% of the total Ethereum supply, nearing its target of 5%. Bitmine has staked over 4.7 million ETH of its holdings, with the value of that amount exceeding $10 billion. The annual staking yield is currently projected at $289 million.

Tom Lee, Chairman of Bitmine, stated earlier this week that he views Ethereum's dip below $2,200 as an "attractive opportunity." Lee also mentioned that he expects Bitmine to reach the "alchemy of 5%" by 2026. This statement was presented as the backdrop for Bitmine's large-scale purchases at prices below $2,200 recently.

However, the Ethereum market has not escaped its short-term bearish trend. According to the article, Ethereum is currently trading below $2,200 and is struggling to maintain above the psychological price level of $2,000. Based on TradingView data, Ethereum was trading at approximately $2,044. CoinGape reported that Ethereum and the broader cryptocurrency market declined after the SEC postponed its decision on tokenized stocks.

Chairman Lee has consistently presented tokenization as one of the bullish arguments for Ethereum. He also emphasized the trend of tokenization as a reason for Bitmine's investment in Ethereum. Consequently, the SEC's decision postponement acted as a burden on Lee's investment thesis for Ethereum.

Bitmine's potential inclusion in the Russell 1000 was also highlighted. Chairman Lee stated that Bitmine was placed on the list of 1,000 large-cap companies for inclusion after FTSE Russell announced its preliminary index inclusion and exclusion lists. Lee cited BMNR stock as one of the reasons for its inclusion, explaining that the market capitalization of this crypto stock exceeds the $5.7 billion threshold for large-cap inclusion.

Chairman Lee assessed the possibility of Russell 1000 inclusion as positive for Bitmine. He noted that many active managers only purchase stocks included in the Russell 1000. He added that an estimated 20-35% of a stock's market capitalization is held by passive index funds and ETFs. While Bitmine's stock price has fallen by over 32% this year, it has risen by over 162% in the past year, around the time of the adoption of its Ethereum treasury strategy.

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