Tom Lee’s Bitmine Adds $112M In Ethereum, Calls Bottom At $2,500

What Happened

Lee, who also serves as Fundstrat Global Advisors’ chief investment officer, told CNBC last month that the bottom is in despite ETH testing the critical $2,870 support level for the first time since July.

This challenges widespread beliefs among original crypto investors who expect 2026 to bring weakness.

Market Context

Ethereum-focused treasury company BitMine received 33,504 ETH worth $112 million from institutional trading desk FalconX, according to on-chain intelligence firm EmberCN.

“We believe ETH is embarking on that same supercycle,” Lee stated, arguing current weakness reflects market doubt rather than fundamental deterioration.

The comparison carries particular weight given his track record of calling major market bottoms, including upgrading the S&P 500 at 720 in February 2009, one month before the generational low at 666.

He noted that tokenization addresses a market “in the quadrillions,” rather than merely replacing gold’s $20 trillion addressable market, as Bitcoin does.

This contrasts sharply with broader market behavior. Bitwise data shows that digital asset treasury companies purchased just 370,000 ETH in November, an 81% decline from August’s peak of 1.97 million ETH.

While competitors retreated amid volatility, BitMine accelerated buying, with Lee noting that his team purchased ETH at more than double the rate compared to two weeks prior.

“If Bitcoin closes above $126,000 by January 31st, then there’s no four-year cycle,” he told Farokh Radio, adding that traditional market indicators like the ISM manufacturing index and copper prices have already broken their historical four-year patterns.

Ethereum’s current price action around $3,100 carries technical significance beyond simple support levels.

Why It Matters

The purchase extends the firm’s aggressive accumulation strategy as chairman Tom Lee declared Ethereum has likely bottomed and projected the asset could reach $7,000 by early 2026.

Lee dismissed concerns about the four-year Bitcoin cycle theory, suggesting it may no longer apply.

Details

The transaction pushes BitMine’s total holdings to approximately 3.86 million ETH, representing 3.2% of Ethereum’s circulating supply, according to StrategicETHReserve data.

Wall Street Veteran Spots Ethereum’s Bitcoin Moment

Lee believes Ethereum is entering the same explosive growth cycle that propelled Bitcoin from $1,000 to over $100,000 since his firm’s initial 2017 recommendation.

Speaking on Farokh Radio, he noted Bitcoin endured multiple 75% drawdowns during that period before ultimately delivering 100x returns to patient holders.

His conviction stems from Wall Street’s accelerating blockchain adoption, particularly BlackRock CEO Larry Fink’s commitment to tokenizing traditional assets on Ethereum.

Lee emphasized that financial institutions require “a neutral and 100% uptime blockchain, and that’s Ethereum” to bring stocks, bonds, and real estate onto distributed ledgers.

BitMine Doubles Down While Paper Losses Mount

The latest purchase follows BitMine’s acquisition of nearly $70 million in ETH over three days in early December, even as the firm sits on unrealized losses with an average cost basis of $3,008 per token.

Management claims it’s roughly 62% toward its long-term target of controlling 5% of total Ether supply, an ambitious goal that would require accumulating approximately 2.5 million additional ETH at current levels.

The company recently appointed Chi Tsang as chief executive, replacing Jonathan Bates as part of a leadership transition aimed at positioning BitMine “to become a leading financial institution.”

Three new independent board members also joined alongside the management change.

Technical Setup Mirrors Pre-Rally Conditions