Fundstrat co-founder and BitMine Immersion Technologies chairman Tom Lee has declared Ethereum the decentralized foundation for the next phase of artificial intelligence, arguing that capital is gradually rotating away from semiconductor companies toward the blockchain network. His statement coincided with a global chip stock rout that erased over $3.3 trillion in market value, pushing the Philadelphia Semiconductor Index close to bear-market territory.
Lee pointed to Ethereum’s 55% outperformance over the DRAM sector in the past month, tying the strength to surging institutional demand. Spot Ethereum ETFs, including BlackRock’s ETHA, have attracted significant inflows, while BitMine itself has accumulated 5.77 million ETH, representing approximately 4.8% of the global supply and making it the largest corporate holder. The company is staking 85% of its position, earning a 2.7% annualized yield that Lee expects will generate around $242 million per year, enough to cover dividends on its preferred stock.
Traditional finance is deepening its ties to Ethereum. BlackRock’s Ethereum-based BUIDL fund has surpassed $2.6 billion in assets, JPMorgan is moving blockchain products onto Ethereum’s public infrastructure, and Robinhood’s Chain settles all network fees in ETH. Lee argued that autonomous AI agents will require a trusted, neutral settlement layer for payments, asset transfers, and transactions—something he believes only a decentralized network like Ethereum can provide, free from reliance on governments, banks, or big tech.
Venture capital firm a16z has described the fusion of blockchain and AI as the “great convergence,” reinforcing the view that the two technologies are evolving together. Lee compared Ethereum’s current moment to Amazon’s early years, suggesting retail investors are overlooking its long-term role in digital finance. However, BitMine’s massive holdings are underwater: with an average cost of roughly $3,997 and ETH trading around $1,840, the firm carries unrealized losses of about $9 billion.
Lee’s outlook comes during a brutal week for tech equities, with Nvidia, AMD, Arm, and TSMC all falling sharply. Even Bitcoin slipped to near $63,200. Yet Lee insists the headwinds of 2026 are ending and that Ethereum is primed for the next bull cycle, underpinned by its expanding role in AI-driven finance.
