Tom Lee, chairman of Ethereum treasury company BitMine, stated that the 'bubble has burst' for digital asset treasury (DAT) companies, as many now trade below the net asset value of their cryptocurrency holdings. This warning came despite BitMine's aggressive $827 million Ethereum buying spree last week, during which it purchased 202,037 ETH amid a market crash that saw over $19 billion in leveraged positions liquidated and Bitcoin briefly drop below $102,000.
Lee made these remarks on Fortune's Crypto Playbook podcast, pointing to widespread trading discounts in the DAT sector as evidence of a collapsed speculative frenzy. He defended Ethereum's position as the 'blockchain of Wall Street', arguing that financial firms exploring stablecoins and tokenized assets will primarily build on Ethereum infrastructure. BitMine's latest holdings update as of October 13, 2025, includes 3,032,188 ETH valued at $4,154 per ETH, 192 Bitcoin (BTC), and a $135 million stake in Eightco Holdings, among other assets.
The purchase brought BitMine's total Ethereum holdings past 3 million tokens, moving the company halfway toward Lee's goal of owning 5% of Ethereum's circulating supply. BitMine now ranks as the second-largest public crypto treasury globally behind MicroStrategy, which holds 640,250 BTC valued at roughly $73 billion. Other Ethereum-focused treasuries like SharpLink and The Ether Machine hold substantially smaller positions.
Lee's warnings highlight concerns about unsustainable business models in the proliferating DAT sector, which has expanded rapidly as companies attempt to replicate MicroStrategy's success. BitMine's share price fell 13.85% over five days following a short position by Kerrisdale Capital, yet it remains among the most heavily traded U.S. stocks, with average five-day volume of $3.5 billion as of October 10. Combined, BitMine and MicroStrategy account for 88% of global DAT trading volume.
Despite the bubble warnings, Lee reiterated his view that Ethereum is entering a 'Supercycle' driven by artificial intelligence and financial sector integration, underpinning BitMine's continued accumulation. The contradiction reflects a nuanced position where dominant players with scale advantages may survive sector consolidation, while smaller competitors face challenges.
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