Tom Lee’s BitMine Shares Pump After Buying the Ethereum Dip

Ethereum treasury BitMine Immersion bought the dip, snapping up 203,826 ETH last week to bring its current holdings to over 3.2 million digital coins—worth more than $13 billion based on early Monday’s price. 

The NYSE-listed firm said it now holds 3,236,014 ETH bought at an average price of $4,022 per coin. Bitmine stock rose by nearly 9% Monday morning New York time. 

BitMine Immersion, which has the largest Ethereum treasury of any publicly traded firm and the second-largest overall crypto treasury, also said it owns 192 Bitcoins worth $21.3 million. 

ETH was recently priced at nearly $4,038 per coin after a rocky few days, dropping last week to as low as $3,709, its lowest mark in two months, according to crypto data provider CoinGecko. 

In a statement, BitMine Chairman and Fundstrat Global Advisors Managing Partner Tom Lee noted ETH’s price drop, part of a wider crypto market swoon last week. 

“The crypto market saw one of its largest deleveraging events ever last week and this put downward pressure on ETH prices,” he said. 

In a Myriad market, nearly 60% of respondents believe that ETH will hit $5,000 before gold does. (Myriad Markets is a product of DASTAN, the parent company of an editorially independent Decrypt.)

Crypto markets got hit hard on October 11 after President Trump announced new trade tariffs on China. Over $19 billion in largely leveraged crypto futures positions were liquidated and the prices of many digital coins and tokens plunged. 

Major coins and tokens like Bitcoin and Ethereum have since recovered some ground but are still well below their all-time highs. 

Lee is the force behind BitMine’s ETH buying strategy, which gives investors exposure to the token without the burdens of holding it directly. BitMine is aiming to acquire 5% of the total ETH supply. 

Lee has long been bullish on Bitcoin, but in June said that Ethereum was rallying and could be the “next Bitcoin” as institutional investor interest in the digital coin and its network soared. Spot Ethereum ETFs have generated more than $14.6 billion in investments with most of those occurring in recent months. 

Lee, a widely watched Wall Street strategist, and other analysts have highlighted the crypto network’s usefulness for transactions involving stablecoins, the volume of which is expected to grow significantly.