BitMine swept up 300,000 ETH and became the largest holder. Tom Lee: The initial scale is larger than MicroStrategy

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ABMedia
07-18
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Here's the English translation: The competition among Ethereum Treasury companies is becoming increasingly fierce. BitMine has purchased over 300,000 ETH in just a few weeks, becoming the world's largest ETH holder. Chairman and Wall Street renowned analyst Tom Lee reviewed MicroStrategy's past performance, emphasizing that BitMine's initial scale is already larger than MicroStrategy's, with promising future prospects. Bitcoin miner BitMine Immersion Technologies (BMNR) announced yesterday that it has accumulated up to 300,657 ETH, with a market value exceeding $1 billion. It has become the current largest ETH holder, even surpassing SharpLink Gaming and the Ethereum Foundation (EF). In early July, BitMine announced the completion of a PIPE financing of $250 million for ETH purchases. Within just one week, their invested funds have exceeded three times the fundraising amount, clearly well-prepared. The company has broken the previous record of 280,000 ETH set by US online gaming company SharpLink, initiating a new round of "ETH Treasury competition" among listed companies. Just like Chairman Tom Lee describes BitMine as the "MicroStrategy of Ethereum", the company has clearly learned from the successful template of the Bitcoin reserve enterprise veteran MicroStrategy (MSTR), which has been using financing to buy crypto as its core strategy since 2020. Tom Lee analyzed that in MicroStrategy's 35-fold stock price increase, 11 times came from Bitcoin's price appreciation, while the remaining 25 times resulted from financial operations like issuing stocks and convertible bonds to raise funds and buy Bitcoin. In other words, "Corporate strategy itself is more important than mere crypto price appreciation." This model is now being applied to ETH by BitMine, with rapid effectiveness - BMNR's stock price has risen 769.3% in one month. It's worth noting that ETH's price volatility is much higher than BTC, which increases potential investment returns through leverage but also amplifies risks. Tom Lee candidly admits that while high volatility can reduce financing costs and increase arbitrage space, it also significantly increases operational difficulty. However, he confidently states that while MicroStrategy initially bought BTC with $250 million, BitMine used similar capital but reached a $1 billion ETH position value by the seventh day, demonstrating faster execution. Whether BitMine's transformation is financial innovation or a market gamble remains to be seen, but it has become an example of an Ethereum Treasury company, potentially inspiring more listed companies to follow suit. Risk Warning: Crypto investments carry high risks with potentially volatile prices. You may lose all your principal. Please carefully assess the risks.

Wall Street's renowned analyst Tom Lee recently stated in an interview with CoinDesk that Ethereum is Wall Street's top blockchain, and with the acceleration of tokenization and stablecoin growth, ETH's price could reach $15,000. Tom Lee's Bitcoin mining company BitMine has transformed into an Ethereum reserve company, purchasing over 300,000 ETH within just a few weeks, becoming the world's largest ETH holder.

Comparing Circle's valuation, ETH is expected to reach $15,000

Wall Street's renowned analyst and Fundstrat co-founder Tom Lee, in his interview, cited a model developed by Fundstrat's Digital Asset Strategy Head Sean Farrell, which compared companies like Circle. Farrell estimates that using EBITDA-based valuation multiples, Ethereum's value could reach as high as $15,000. Lee supports this logic, noting that Layer 1 platforms like Ethereum drive entire ecosystems and typically require higher valuation multiples, similar to how software companies have higher pricing compared to consumer goods enterprises.

Tom Lee also cited technical analysis from Fundstrat's Technical Strategy Head Mark Newton, believing Ethereum could reach $4,000 by the end of July. Lee stated that $4,000 is just an initial target, and based on current adoption and valuation trends, an ETH price between $10,000 and $15,000 is realistic. While he didn't provide an exact timeline, he suggested this goal might be achieved by the end of the year or even earlier.

Early this month, Tom Lee told CNBC that Ethereum is the "Wall Street preferred" blockchain infrastructure. He pointed out that JPMorgan's stablecoin and Robinhood's tokenization plans are based on Ethereum, indicating traditional finance is aligning with the Ethereum network. With Ethereum holding over 60% of tokenized real-world assets (RWA), he expects this number to continue growing. If stablecoin market cap breaks the $2 trillion mark as predicted by Treasury Secretary Bessen, he believes Ethereum's usage could grow exponentially.

Tom Lee leads Bitcoin mining company BitMine's transformation into an Ethereum reserve company

In early July, Tom Lee became the board chairman of Bitcoin mining company BitMine Immersion Technologies and drove its transformation into an Ethereum reserve company. Investors include prominent crypto institutions like Founders Fund, Pantera, FalconX, Kraken, Galaxy Digital, DCG, and GSR. Silicon Valley investment veteran Peter Thiel personally acquired 9.1% of BitMine's shares, attracting significant investor attention.

Tom Lee describes BitMine as the "MicroStrategy of Ethereum", following the successful template of Bitcoin reserve enterprise MicroStrategy (MSTR), purchasing over 300,000 ETH within just a few weeks, becoming the world's largest ETH holder.

(BitMine sweeps 300,000 ETH to become the largest holder, Tom Lee: Starting scale larger than MicroStrategy)

Risk Warning

Crypto investments carry high risk, with potentially volatile prices, and you may lose your entire principal. Please carefully assess the risks.

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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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