Fundstrat’s head of research, Tom Lee, wants to transform an under-the-radar crypto miner, BitMine Immersion Technologies, into the biggest publicly traded holder of Ethereum.
On Monday, the BTC miner named Lee as its chairman of the board and announced plans to raise $250 million via a private placement as well.
In its press release, the company confirmed that it will use proceeds from this private placement to buy Ether, adding that the crypto will begin serving as its primary treasury reserve asset over time.
Note that the Ethereum price is currently up 70% versus its year-to-date low in early April.
Why is Tom Lee onboard with BitMine’s ETH strategy?
Lee is joining BitMine as its chairman at a time when the Senate’s approval of the “GENIUS Act” is driving unprecedented demand for stablecoins.
He’s onboard with the company’s Ethereum strategy as the blue-chip crypto stands to benefit rather significantly from continued momentum in stablecoins.
“Ethereum is the blockchain where the majority of stablecoin payments are transacted … and thus, ETH should benefit from this growth,” Fundstrat’s senior expert argued in a statement on Monday.
Similar to Strategy’s “BTC Yield”, BMNR will use ETH held per share as a key performance metric moving forward, he added.
Is BMNR the only one turning to Ethereum as a reserve asset?
Tom Lee expects stablecoins to see accelerated adoption ahead as they’ve successfully established themselves as “the ChatGPT of crypto.”
According to him, BitMine will use “a combination of reinvestment of the company’s cash flows and capital markets activities” to increase the value of Ethereum held per company share.
Note that BMNR is not alone in looking past Bitcoin as a primary treasury reserve asset.
Earlier this year, betting firm SharpLink Gaming announced a similar initiative as well.
At the time, SBET shares soared to a high of about $60.
However, they’ve pared back their entire gains in June and are currently going for about $9 and change.
Lee sees massive upside potential in the ETH price by year-end
While Ethereum has not been nearly as exciting for investors in recent years as BTC, Fundstrat’s Tom Lee remains bullish as ever on the world’s second-largest crypto by market cap.
Lee continues to believe that ETH will hit $5,000 by the end of this year, which signals potential upside of more than 100% for the cryptocurrency from current levels.
According to the world-renowned strategist, improving regulatory backdrop, growing institutional interest, and now the continued momentum in stablecoin adoption could help Ethereum prices pop significantly in the back half of 2025.
Such a sharp increase in ETH could prove a major tailwind for BitMine Immersion Technologies, given the LA headquartered firm’s pivot to buying Ethereum to use it as its primary treasury reserve asset.
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