BitMine’s Tom Lee: Crypto Treasury Bubble Already Burst

According to BitMine Chairman Tom Lee, the explosive growth of Digital Assets Treasury companies has reached a critical inflection point. During his appearance on Fortune’s Crypto Playbook Podcast, Lee addressed concerns about a potential bubble in the DAT sector, asserting that the market correction has already occurred. “The bubble has likely already burst, at least to some capacity,” Lee stated, pointing to the stark reality that around 80% of these firms are trading below the net value of their underlying assets.

Lee’s assessment comes as the DAT market has expanded to include hundreds of companies, raising questions about sustainability and valuation. When pressed by Fortune’s senior crypto analysts about whether the bubble might burst and negatively impact the market, Lee countered with a rhetorical question: “If that’s not already a bubble burst, how would that bubble burst?” This perspective suggests that the market has already undergone the necessary correction, weeding out weaker players while strengthening the position of established leaders like BitMine and Strategy, which together account for 86% of all DAT trading volume.

While acknowledging challenges in the broader DAT market, Lee emphasized that BitMine operates on a fundamentally different premise than typical crypto treasury vehicles. “BitMine is not just a DAT,” Lee declared, positioning the company as both an investment vehicle and an active participant in the Ethereum ecosystem. This distinction is crucial, as Lee noted that while other crypto treasuries have struggled to create shareholder value, BitMine’s strategy extends beyond passive asset accumulation.

The company’s substantial Ethereum holdings form the cornerstone of this differentiated approach. BitMine currently holds 3.03 million ETH tokens, representing over 2.5% of Ethereum’s total supply and making it the world’s largest Ethereum holder. More significantly, the company has set an ambitious target to own 5% of Ethereum’s total supply, a goal that would cement its influence within the network. According to Lee, this scale of ownership transforms BitMine from a mere investment vehicle into an active network participant that provides “a significant amount of security to the Ethereum network.”

Lee elaborated on BitMine’s multifaceted role within the cryptocurrency ecosystem, describing the company as “essentially a liaison between how Wall Street views future upgrades to Ethereum, to the community.” This bridging function positions BitMine at the intersection of traditional finance and decentralized networks, allowing it to influence both investment perspectives and technological development.

The company’s substantial Ethereum stake enables this unique position, according to Lee. “We’re not just a DAT. We’re becoming one of the important voices within Ethereum, and that really was our goal,” he explained, referencing BitMine’s founding vision. This strategic approach distinguishes BitMine from other DAT companies that focus primarily on asset accumulation without developing deeper network integration or influence.

Lee reinforced his confidence in Ethereum as the premier cryptocurrency investment, particularly in the context of emerging technological trends. During the podcast, he reiterated his belief that “the two ‘Supercycle investing narratives remain AI and crypto,'” which he expects to “play out over decades.” Within this framework, Lee positioned Ethereum as the superior choice due to its “high reliability and 100% uptime.”

The BitMine chairman pointed to the convergence of artificial intelligence and blockchain technology as a particularly promising area for Ethereum’s growth. “The tokenization of everything else is in the quadrillions,” Lee stated, adding that “especially as AI moves towards micro payments, which need to happen on the blockchain, that to me is a bigger opportunity.” He concluded that “Ethereum is where a lot of this is going to be built,” making the case that “there’s still an exponential opportunity in owning ETH over Bitcoin.” This perspective informs BitMine’s strategic focus on Ethereum accumulation and network participation as core components of its long-term value proposition.