Tom Lee transforms into an Ethereum long positions, optimistic about its treasury strategy

On Wall Street, Tom Lee is highly regarded for his accurate market predictions and deep insights into assets such as technology stocks and cryptocurrencies. As the founder of the research firm Fundstrat, Lee is a well-known analyst in traditional markets and a strong supporter of digital assets like Bitcoin and Ethereum.

Recently, Lee was appointed as the chairman of the board of mining company Bitmine and participated in the company's launch of a $250 million Ethereum treasury strategy, attracting widespread market attention. In a recent interview, Lee boldly predicted that during the current market cycle, the price of Ethereum will rise to $10,000.

Bitmine Launches $250 Million Ethereum Treasury Strategy

The mining company Bitmine Immersion Technologies (BMNR) recently announced a $250 million private placement plan to fund its Ethereum treasury strategy, a move similar to that of a well-known company adopting a Bitcoin treasury strategy.

On July 3, Bitmine's stock soared over 1,000%, sparking enthusiastic discussions among investors. The fundraising was led by MOZAYYX and received support from several active crypto investment institutions.

At the same time, Bitmine announced the appointment of Tom Lee as the chairman of the board. Lee is the founder of Fundstrat and a well-known strategist who has long been optimistic about cryptocurrencies. His early strong belief in Bitcoin and tech stocks has earned him a loyal following on Wall Street.

Despite the surge in stock prices attracting widespread attention, it also comes with warnings. Some analysts point out that while crypto treasury strategies are a powerful narrative driver, they also introduce new volatility risks. The future of Bitmine will be closely tied to the trends of Ethereum, and in this field, sentiment shifts can happen very quickly.

Tom Lee is optimistic about the future of Ethereum

In a recent interview, Lee stated that he is optimistic about Ethereum because it is a programmable smart contract blockchain, and the rise of stablecoins is a reason for supporting Ethereum. He mentioned the recent popularity of a stablecoin listing company, which is valued at $9 billion. Lee pointed out that this proves traditional finance is trying to give tokenized assets the properties of stocks, while the crypto world is tokenizing stocks.

Lee believes that stablecoins are a very good business model, highly effective for consumers and merchants. However, they must all operate on the blockchain, and most stablecoin transactions occur on Ethereum. He predicts that if the stablecoin market grows tenfold, it will lead to exponential growth in Ethereum's transaction fees.

Advantages of Treasury Strategy

When discussing the advantages of treasury strategies compared to directly purchasing Ethereum, Lee listed five important aspects:

1. Increase the amount of tokens per share: The goal of the treasury company is to increase the amount of tokens per share, which is a form of reflective growth.
2. Lower capital costs: Reduce capital costs through convertible bonds or derivatives.
3. The gap between market price and net asset value: arbitrage and mergers can be conducted.
4. Establish an operating company: You can engage in business that helps the DeFi ecosystem.
5. Create structured put options: Treasury companies that are important to the ecosystem may become the preferred choice for institutional investors.

Tom Lee's Career

Lee's career began in the early 1990s, working at several well-known financial institutions. In 1999, he joined a large bank as the Chief Equity Strategist. In 2014, Lee founded his own research consulting firm, Fundstrat Global Advisors.

Lee is the first major strategist on Wall Street to provide formal research on Bitcoin for clients, a move that garnered widespread media attention at the time. He is renowned for his deep insights into the market and accurate long-term predictions, with analyses covering stock index forecasts, views on market rebounds, and comments on specific stocks.

Recently, he predicted that a certain stock index would rise by 10% in 2025, and believed that the current market rebound, although positive, has not yet gained the trust of most investors. Despite being criticized for his optimistic market outlook, Lee's supporters highly praise his institutional-level perspective and deep understanding of market trends.