Tom Lee, founder of Fundstrat Global Advisors and Chairman of Bitmine, has made a significant institutional purchase of Ethereum and offered a bullish long-term outlook for the asset, countering pervasive market pessimism. In an interview on CNBC's "Closing Bell," Lee addressed the sharp market decline, which has seen Ethereum lose approximately 40% of its value over the past ten days and nearly 30% year-to-date in 2026.
Lee strongly refuted claims of a "death spiral" for Ethereum, pointing to robust fundamental network growth. He highlighted that the number of active addresses on the Ethereum network has surged by 117% compared to a year ago, and network usage has increased by 80% in the last six months. Lee emphasized that Wall Street institutions like UBS, Fidelity, and Standard Chartered are predominantly choosing the Ethereum blockchain for their tokenization projects, signaling enduring utility and adoption.
Concurrently, Bitmine, the firm Lee leads, purchased 20,000 ETH worth approximately $41.98 million during the market weakness. This transaction, spotted by on-chain analytics firm Lookonchain, signals a vote of confidence from a key institutional player. Lee detailed Bitmine's strong financial position, noting the company is debt-free, generates about $1 million in daily cash flow, and holds 4.3 million Ethereum, which yields a 3% annual return.
Lee drew on historical patterns, recalling that Ethereum has experienced seven declines of 60% or more in the last eight years. "The most important common feature of these declines is that each one is followed by a 'V' shaped recovery, meaning a sharp recovery that occurs as quickly as the decline," he stated. He predicts the market is currently searching for a bottom and anticipates a similarly rapid recovery.
The broader market context remains challenging, with Bitcoin down around 20% year-to-date and other major altcoins like BNB and XRP also facing double-digit losses. Despite this, Lee's actions and commentary underscore a strategic, long-term institutional perspective focused on fundamental strength rather than short-term price volatility.
