After one of the biggest crypto selloffs in recent memory, market strategist Tom Lee believes the worst may already be behind -and that Ethereum could emerge as the biggest winner.
Lee’s comments come as blockchain data reveals a surge in large-scale Ether accumulation, led by BitMine Immersion Technologies, which has quietly added nearly 380,000 ETH this week. The firm now controls over 3 million coins, or roughly 2.5% of the total supply, making it the largest corporate holder of Ether worldwide.
The latest purchases – spanning three transactions – represent an investment of about $1.5 billion, according to data from Arkham Intelligence. BitMine began building its Ethereum position in July, when the asset traded around $2,500, and is now halfway toward its goal of owning 5% of the network’s supply.
A Shift in the Narrative
Despite this aggressive buying, Lee isn’t blind to cracks forming in the once-hyped digital asset treasury (DAT) narrative. Speaking in an interview this week, he said many treasury-style firms are now valued below their net asset value, a clear sign that the market has lost enthusiasm for what was once a booming sector.
“The air’s already coming out of that bubble,” Lee said, though he believes the correction could ultimately filter out weak hands while rewarding disciplined firms with smart capital strategies.
That view was echoed by 10x Research, which noted that well-managed DATs with deep balance sheets could still deliver strong returns, even as peers like Metaplanet and Strategy trade near or below their underlying asset value.
Ethereum Over Bitcoin?
Lee’s long-term view on Ethereum remains strikingly bullish. In a conversation with ARK Invest’s Cathie Wood, he compared the blockchain’s potential to the financial revolution of the 1970s, when equities overtook gold as the preferred global store of value.
“Ethereum could flip Bitcoin the same way stocks replaced gold,” he said, describing the asset as the technological backbone of the next phase of digital finance.
A Market in Recovery
Crypto investors are still nursing heavy losses from last weekend’s $20 billion liquidation cascade – the biggest in the industry’s history. Yet, Lee insists the environment now favors accumulation over fear.
“This isn’t a market top – it’s the basement,” he told CNBC. “Leverage is gone, risk has been flushed out, and that’s exactly when long-term opportunities start to form.”
Even as gold continues to outperform in 2025, Lee says the comparison misses the point. The precious metal, he argues, reflects a defensive mood, while Ethereum and other smart-contract assets are where innovation – and eventual returns – will come from.
With the crypto market still 15% below its October highs, BitMine’s billion-dollar buying spree may prove either bold or brilliant. For now, it signals one thing clearly: some of the industry’s biggest players are betting that the next cycle starts with Ethereum, not Bitcoin.
