Bitmine Adds $1.5B in Ether After Market Crash Despite Lee’s Warning of a Treasury Bubble

Bitmine Immersion Technologies has purchased 379,271 Ether worth about $1.5 billion following last weekend’s major market crash, as analyst Tom Lee remains bullish on Ether despite warning that the DAT bubble may have burst.

Data from Arkham Intelligence and BMNR Bullz show that the purchases were made in three rounds: 202,037 ETH after the weekend’s crash, 104,336 ETH on Thursday, and 72,898 on Saturday, although the company has not confirmed these transactions.

Bitmine is currently the world’s largest Ether treasury company, holding over 3 million ETH, which is about 2.5% of all Ether and worth around $11.7 billion, with plans to increase holdings to 5% of the total supply.

Tom Lee told ARK Invest CEO Cathie Wood that Ethereum could one day overtake Bitcoin, similar to how stocks replaced gold after 1971, showing his continued confidence in the asset.

Investors Bet on Ether Treasuries Despite Bubble Concerns

Investors are still heavily buying Ether, even though Lee believes the digital asset treasury may have already burst, noting that many treasuries are trading less than the value of the crypto they hold.

Backing up Lee’s view, 10x Research pointed out that major digital assets treasuries such as Metaplanet and Strategy are trading at or below the crypto they own.

Despite the concerns, 10X Research highlighted that digital asset treasuries with enough capital and smart management can still make good profits.

Huobi founder Li Lin is aiming for those profits and has reportedly raised about $1 billion to invest in an Ether treasury,

Investors Shift Focus to Gold as Crypto Slides

Lee told CNBC that investors are still recovering from the recent market crash, but some are also eyeing gold, which has reached new record highs above $4,300 an ounce, marking its biggest weekly gain since 2008, amid economic uncertainty.

Gold ETFs have also posted strong inflows, pushing holdings to long-term highs while Bitcoin ETFs recorded outflows. Analysts say this shows that during market uncertainty, investors prefer gold’s stability over crypto’s volatility.

Meanwhile, crypto prices are down about 15% from their record high on October 7, while gold has dropped 3% from its peak last Thursday.