Tom Lee’s BitMine Invests $112M in Ethereum, Declares Bottom at $2,500

BitMine, a company focused on Ethereum investments, has acquired 33,504 ETH valued at $112 million from FalconX. Tom Lee, the chairman, believes Ethereum has reached its bottom and forecasts a potential rise to $7,000 by early 2026. This purchase increases BitMine's total Ethereum holdings to about 3.86 million ETH, representing 3.2% of the total supply.

Key Takeaways

Investment Overview: BitMine purchased 33,504 ETH for $112 million, indicating strong bullish sentiment.
Market Prediction: Tom Lee forecasts Ethereum could reach $7,000 by early 2026.
Institutional Trends: The firm’s aggressive accumulation contrasts with a broader market decline in Ethereum purchases.
Leadership Changes: BitMine undergoes a leadership transition to enhance its positioning in the financial market.
Technical Insights: Current price patterns suggest potential bullish reversals ahead for Ethereum.

Tom Lee's BitMine Adds $112M in Ethereum, Calls Bottom at $2,500

BitMine's Strategic Ethereum Investment

BitMine, a treasury company focused on Ethereum, acquired 33,504 ETH worth $112 million from FalconX, as reported by EmberCN, a leading on-chain intelligence firm. This acquisition is part of an assertive investment strategy, with chairman Tom Lee claiming that Ethereum has likely reached its bottom price of $2,500 and anticipates that it could soar to $7,000 by early 2026.

This transaction raises BitMine’s total Ethereum holdings to approximately 3.86 million ETH, equating to 3.2% of the current circulating supply of Ethereum, according to data from StrategicETHReserve.

Recently, Lee, who also serves as the chief investment officer at Fundstrat Global Advisors, commented to CNBC that despite Ethereum testing the critical support level of $2,870 for the first time since July, he believes the asset has hit its bottom.

BitMine's Ethereum Investment

Ethereum's Growth Cycle Similar to Bitcoin

Tom Lee sees Ethereum entering a remarkable growth phase akin to what Bitcoin experienced, skyrocketing from $1,000 to over $100,000 since his firm’s recommendation in 2017. During his discussion on Farokh Radio, he pointed out that Bitcoin faced multiple 75% downturns along the way, yet ultimately yielded 100x returns for long-term holders.

Lee expressed, “We believe ETH is embarking on that same supercycle,” suggesting the current market weakness reflects uncertainty rather than a decline in Ethereum's fundamentals. His insights draw significant attention as he has a proven history of identifying crucial market bottoms, including a significant upgrade of the S&P 500 at 720 in February 2009.

This optimism is further influenced by increasing blockchain adoption among Wall Street institutions. Lee highlighted the importance of Ethereum for financial institutions aiming to tokenize traditional assets, citing BlackRock CEO Larry Fink’s commitment to this initiative. “A neutral and 100% uptime blockchain is essential for bringing stocks, bonds, and real estate onto distributed ledgers, and that’s Ethereum,” he asserted.

BitMine's Continued Accumulation Amid Losses

The recent purchase by BitMine comes on the heels of nearly $70 million in Ethereum acquisitions made in early December, despite the firm currently facing unrealized losses with an average buying price of $3,008 per token. Management reports being about 62% of the way toward their long-term goal of controlling 5% of Ethereum’s total supply, which necessitates acquiring around 2.5 million more ETH at current prices.

In contrast, the broader market has been retreating. According to Bitwise data, digital asset treasury companies bought only 370,000 ETH in November, marking an 81% drop from the high of 1.97 million ETH purchased in August. Even as competitors pull back amidst market volatility, BitMine has ramped up its buying efforts, with Lee indicating that his team has increased their purchasing rate significantly compared to previous weeks.

Lee has also suggested that the conventional four-year Bitcoin cycle may no longer be relevant. “If Bitcoin closes above $126,000 by January 31st, then there’s no four-year cycle,” he remarked during Farokh Radio, adding that traditional market indicators have broken their usual cycles.

Ethereum's Technical Setup Signals Opportunity

Currently, Ethereum’s price hovering around $3,100 carries technical implications beyond basic support levels. The asset recently retested the significant support line at $2,870—this level was critical before a 72% rally that peaked near $4,900 in August. Lee highlighted this pattern in support of his belief that a bottom may have formed, although he acknowledged that the asset has been in a persistent downtrend.

Market indicators reflect a high level of pessimism, often characteristic of price reversals. The Crypto Fear & Greed Index sits at 29, indicating a prevailing sense of fear that typically signals potential accumulation phases in the market.

Ignacio Aguirre, the chief marketing officer at Bitget, shared optimistic projections, stating that ETH could rise toward $3,800 as “institutional inflows resume and macro conditions stabilize” following recent changes in Federal Reserve interest rates.

As of the latest data, Bitcoin was trading at around $90,000, while Ethereum maintained its position above $3,200. Both assets experienced a slight 2% decline in early Asian trading hours today.