Tom Lee’s $250 Million Ethereum Bet Boosts Bitmine Stock 2,934%

Fundstrat’s Tom Lee has been hailed as a significant bullish force for Ethereum this year. His recent actions have sparked considerable interest and movement in the cryptocurrency market. Lee, known for his bullish stance on Bitcoin, has made a notable shift towards Ethereum, launching a $250 million Ethereum treasury for his company Bitmine. This move has positioned him as a key advocate for Ethereum, similar to how Michael Saylor is seen for Bitcoin.

Lee’s optimism about Ethereum was further highlighted in his appearance on CNBC, where he stated that Ethereum is the next Bitcoin and that stablecoins are a pivotal moment for the cryptocurrency industry. He emphasized that Ethereum serves as the backbone for stablecoins, making it a crucial asset to accumulate and influence the network. This sentiment has resonated with the market, leading to a significant surge in Bitmine Immersion Technologies stock (BNMR), which increased by 2,934% since the announcement. The share price topped $140 on Thursday, marking a substantial rise from the previous week’s closing price of $4.27.

Lee’s bullish stance on Ethereum has been compared to his 2017 prediction on CNBC, where he forecasted that Bitcoin would reach $55,000 when it was trading around $2,000. At that time, his prediction was met with skepticism from industry figures like JPMorgan boss Jamie Dimon and billionaire Warren Buffett. However, Lee’s current focus on Ethereum has garnered attention and support from various analysts and experts. Ryan Sean Adams, co-founder of Bankless, opined that Lee’s move is the most bullish thing to happen to Ethereum this year, suggesting that Wall Street is taking notice and that Ethereum prices are poised to rise.

Other industry figures have also acknowledged the potential impact of Lee’s actions. DCinvestor, despite not being a fan of Ethereum, conceded that the influx of trillions of dollars in stablecoins and the involvement of financial institutions could be bullish for ETH. Joseph Lubin’s gaming firm, SharpLink, has also raised $425 million to stack and stake Ethereum, further emphasizing the growing institutional interest in the cryptocurrency. SharpLink Gaming is set to ring the Nasdaq closing bell on July 7 to celebrate its Ethereum treasury milestone, highlighting the significance of this trend.

Despite the bullish sentiment, Ethereum prices have remained relatively stable, with some observers noting that it is trading like a stablecoin due to lack of movement. The asset reclaimed $2,600 during late trading on Thursday but retreated slightly on Friday morning. Analysts like ‘Merlijn The Trader’ have observed that Ethereum has “just nailed the retest” and “bounced perfectly off the breakout zone,” suggesting that the next wave of price movement could be imminent. However, Ethereum still needs to reclaim and hold the $2,800 level before any further momentum can be measured.

The accumulation of Ethereum by institutional investors has reached a record high, with accumulation addresses holding 22.7465 million ETH as of June 30. This figure represents a 36% increase from the previous month, indicating strong institutional confidence in Ethereum's long-term outlook. The realized price for these addresses stood at $2,114.70 on July 1, while ETH traded at $2,565 on July 2, giving holders an unrealized gain of 21.29%. Liquid staking also posted new records, growing from 34.5461 million on June 1 to 35.5265 million ETH by June 30, marking the largest monthly staking growth on record for Ethereum. Protocols like Lido and Binance ETH Staking emerged as key beneficiaries due to their scale and features that attract institutional flows.

Despite Ethereum's price staying below bullish expectations throughout last month, these accumulation and staking trends pointed to a strong institutional confidence in the altcoin’s long-term outlook. The record levels of locked ETH and continued accumulation indicate the market may be positioning for a more upward move. Building on this momentum, Ethereum is now catching the eye of corporate treasuries. The project may be entering its own “MicroStrategy era” as corporations begin stacking ETH for treasury strategies, seeking yield alongside reserve asset growth. BitMine and SharpLink are leading this shift. The latter, for one, is planning a $250 million ETH allocation and adopting an “ETH per share” model. Tom Lee notes that Ethereum will benefit as stablecoin adoption rises and finance moves on-chain. Meanwhile, Joe Lubin’s SharpLink raised $425 million to stack and stake ETH. Industry watchers believe this is the start of a wave of Ethereum treasury companies, with firms waking up to ETH’s dual role as a reserve asset and yield generator.

Several public companies have also expanded their Ethereum allocations, aiming to replicate Michael Saylor's strategy for the top altcoin. NASDAQ-listed Bit Digital (BTBT) secured an additional $21.4 million to boost its Ethereum treasury strategy, while SharpLink Gaming (SBET) purchased 9,468 ETH after raising $24.4 million. BitMine Immersion Technologies (BMNR) is also planning to raise $250 million in a private placement to kickstart an ETH treasury strategy. However, analysts have cautioned that companies copying Saylor's playbook could trigger system risks in the crypto market. The current price action was seen as a test of Ethereum's strength, and a successful breakout above $2,600 could pave the way for a sustained bullish trend. The MACD had made a bullish crossover, confirming momentum in favor of buyers. Ethereum had reclaimed critical moving averages, and if buyers continued while sellers exhausted, ETH could reclaim $2,548 and eye a breakout to $2,700. The bullish divergence in Ethereum's price in July suggested a potential shift in market sentiment, with institutional interest and technical indicators pointing towards a sustained upward trend.