Tom Lee’s BitMine Buys $112M in Ethereum, Declares Bottom at $2,500
Ethereum-focused treasury firm BitMine recently purchased 33,504 ETH worth $112 million from institutional trading desk FalconX, according to on-chain intelligence firm EmberCN.
The move continues BitMine’s aggressive accumulation strategy as chairman Tom Lee declared that Ethereum has likely hit its bottom and projected the cryptocurrency could reach $7,000 by early 2026.
The purchase pushes BitMine’s holdings to roughly 3.86 million ETH, representing 3.2% of Ethereum’s circulating supply, according to StrategicETHReserve data.
Lee, who is also CIO of Fundstrat Global Advisors, told CNBC last month that the bottom is in place, even as ETH recently tested the critical $2,870 support level for the first time since July.
Ethereum Could Be Entering a Bitcoin-Style Supercycle
Lee believes Ethereum is starting a growth phase similar to Bitcoin’s run from $1,000 to over $100,000, following his firm’s 2017 recommendation.
Speaking on Farokh Radio, he highlighted that Bitcoin endured multiple 75% drawdowns during that period before ultimately delivering 100x returns to patient holders.
“We believe ETH is embarking on that same supercycle,” Lee said, noting that current market weakness reflects short-term doubt rather than fundamental deterioration.
His track record adds weight to the prediction: Lee famously called major market bottoms, including upgrading the S&P 500 at 720 in February 2009, just before the generational low at 666.
Lee pointed to Wall Street’s growing adoption of blockchain, particularly BlackRock CEO Larry Fink’s commitment to tokenizing traditional assets on Ethereum, as a key catalyst.
“Financial institutions need a neutral and reliable blockchain, and that’s Ethereum,” Lee said, explaining that tokenization could address markets in the quadrillions, far beyond gold’s $20 trillion market that Bitcoin targets.
BitMine Doubles Down Despite Paper Losses
This $112 million purchase follows BitMine acquiring nearly $70 million in ETH over three days in early December, even while sitting on unrealized losses at an average cost of $3,008 per token.
The company says it’s now 62% of the way toward its long-term target of holding 5% of Ethereum’s total supply, which would require roughly 2.5 million more ETH at current prices.
This is in stark contrast to the broader market. Data from Bitwise shows digital asset treasury companies bought only 370,000 ETH in November, an 81% drop from August’s peak of 1.97 million ETH.
While competitors pulled back amid volatility, BitMine accelerated buying. Lee noted his team was buying ETH at twice the pace of two weeks prior.
He also questioned the traditional four-year Bitcoin cycle, suggesting it may no longer apply. “If Bitcoin closes above $126,000 by January 31st, there’s no four-year cycle,” he said, citing that traditional market indicators like the ISM manufacturing index and copper prices have already broken historical patterns.
Leadership Changes and Institutional Focus
BitMine recently appointed Chi Tsang as CEO, replacing Jonathan Bates, as part of a leadership overhaul aimed at positioning the firm as a leading financial institution. Three new independent board members also joined.
Technical Setup Signals Potential Rally
Ethereum’s price around $3,100 is technically significant. After retesting the $2,870 support level, ETH previously rallied 72% to nearly $4,900 in August.
Lee cited this pattern when declaring that the bottom is likely in place, while noting the market has been in a sustained downtrend.
Indicators reflect extreme pessimism, often a precursor to reversals. The Crypto Fear & Greed Index currently sits near 29, signaling lingering fear but potential accumulation opportunities.
Ignacio Aguirre, CMO at Bitget, told Cryptonews that ETH could climb toward $3,800 as institutional flows return and macro conditions stabilize following the recent Federal Reserve rate cut.
At press time, Bitcoin traded near $90,000, while Ethereum held above $3,200, with both assets pulling back roughly 2% in early Asian trading hours.
