Original title: The World’s Largest ETH Holder - Tom Lee on Treasuries, Ethereum Dominance, and Wall Street
Guest: Tom Lee, Chairman of the Board of Bitmine
Podcast Date: August 6, 2025
Compiled and translated by: Fairy, ChainCatcher
Editor's note:
Ethereum may be approaching its 'sovereign narrative moment'.
Bitmine acquired 830,000 ETH in just one month, targeting 1% of the global total supply. While most institutions were still observing, it became the world's largest ETH treasury company, driven not only by a bet on asset prices but also by a strategic positioning on the future of financial infrastructure.
This interview features a dialogue with Tom Lee, Chairman of Bitmine, deeply analyzing Bitmine's grand vision and fine execution while exploring Ethereum's key role in financialization, compliant staking, and the AI era. This is not only an insight into digital asset allocation but also a forward-looking interpretation of the new institutional cycle and financial ecological transformation.
The following is the dialogue content compiled by ChainCatcher.
Host: Bitmine currently holds 833,000 ETH, accounting for nearly 1% of the total global ETH supply, making it the largest publicly traded ETH treasury company. How does that feel?
Tom Lee: Indeed, the pace is fast. From the announcement on June 30 to completion on July 8, we rapidly acquired a large amount of ETH within 27 days. MicroStrategy has verified the successful path of its treasury strategy, with its stock price soaring from $13 in August 2020 to the current level, achieving a 30-fold increase; Bitcoin has risen from $11,000 to $120,000, with asset appreciation alone bringing 20 times returns.
I believe that Ethereum is a significant macro trade for the next decade, and we hope to hold as much as possible while ETH is still around $3,500, preparing for explosive growth similar to Bitcoin over the past five years.
Host: After Bitmine announced its ETH treasury strategy, other companies like Joe Lubin's SBET and Sharpling Gaming quickly followed suit, announcing similar plans almost simultaneously. Why did these ETH treasury companies emerge in such a concentrated timeframe?
Tom Lee: Perhaps it is 'great minds think alike'. Sharpling was the first company to announce a treasury strategy, revealing the plan as early as May, while we were a bit later.
There are several reasons why Ethereum is suitable as a treasury asset:
First, if you are optimistic about the long-term value of ETH, the treasury strategy is more attractive than an ETF because you can continuously buy and hold for the long term.
Secondly, Ethereum is based on Proof of Stake (PoS), allowing for native yield of over 3% through staking, essentially giving these companies a stable income source like infrastructure operators.
Finally, scarcity is key. Bitmine aims to hold 5% of the total ETH supply. We have a very clean balance sheet, with daily trading volume of $1.6 billion, making it the 42nd largest liquid stock in the U.S. market, comparable to Uber. Yet our market cap is only $4 billion, far below Uber's $184 billion.
Host: You mentioned Bitmine's goal of holding 5% of the ETH supply; do you really plan to reach 5%? What is the execution path?
Tom Lee: MicroStrategy's target is to hold 1 million Bitcoins, accounting for about 5% of the supply, which can be seen as a 'sovereign call option', significant for the ecosystem on a strategic level. If the U.S. government wants to establish a Bitcoin reserve, direct market purchases will drive up prices, possibly pushing Bitcoin to $1 million. Holding a large amount of BTC makes MicroStrategy an easier acquisition target.
The same logic applies to ETH. Bitmine is currently increasing its holdings by 800 to 1,000 ETH daily, a rate 12 times faster than MicroStrategy. If we maintain this pace, we expect to reach the 5% target within 1 to 2 years.
Our operations are entirely within the United States, strictly adhering to U.S. laws and regulatory frameworks. Ethereum is currently the most compliant blockchain, meeting Wall Street and government requirements for infrastructure. As asset tokenization rises, the degree of financialization of ETH will continue to increase, just as gamers buy Nvidia stock; in the future, Wall Street will also have to hold ETH and ensure its staking is compliant.
Host: If Wall Street and AI turn to Ethereum, could there be a scenario similar to a 'sovereign call option'?
Tom Lee: It is not impossible, but we are not simply building a position for this 'sovereign option'.
Imagine a future where the U.S. pushes for the financial system to go on-chain through some legislation (like the hypothetical 'Genius Act'), and Ethereum becomes the most important compliant underlying chain, not only supporting the U.S. but potentially being adopted by other countries. In this context, the U.S. will naturally want to have a certain degree of dominance over Ethereum.
Moreover, AI and asset tokenization require high security for the underlying chain. Bitmine has a clean balance sheet and compliant operating model, which will play a key role in staking and other areas. We will announce our staking plan soon and will strictly follow U.S. GAAP and all regulatory requirements.
ETH treasury companies are not only asset holders but also builders of new financial infrastructure, which will bring staking income and other business models in the future.
Host: Bitmine purchased $3 billion worth of ETH in just one month, yet the ETH price has not broken through $4,000. Where did these ETH come from? Why hasn't there been significant market fluctuation?
Tom Lee: In the short term, the price of ETH is influenced by various factors, such as liquidation structures and trading hedges, and some still believe Ethereum is a 'dead chain' and short it. Similar situations were seen with Bitcoin in 2017 when the price hovered around $1,000, followed by a surge. I believe ETH is currently in a similar phase, and Wall Street is just beginning to pay real attention to it. In the long term, the fair value of ETH is far above current levels.
Host: Why choose an ETH treasury company instead of a Bitcoin or other asset treasury company?
Tom Lee: I am very optimistic about Bitcoin, believing it has the potential to rise to $1 million or even $1.5 million. However, the two have different positions: Bitcoin is digital gold, focusing on value storage; Ethereum is the foundational chain for finance and AI, with more platform attributes.
For many U.S. institutions, ETH ETFs may not meet fund investment parameters, while treasury companies provide a compliant and efficient alternative. Notable institutions like Cathie Wood and Bill Miller support Bitmine precisely because it allows them to participate directly in the macro opportunities of ETH.
In addition, Ethereum's DeFi ecosystem provides more tools for treasury strategies, such as increasing holdings through staking or on-chain yield strategies, which Bitcoin cannot currently achieve.
Host: Where does the MNAV (Market Net Asset Value) premium come from? Why does it exist?
Tom Lee: The MNAV premium mainly comes from three aspects: yield, growth rate, and liquidity.
Taking Bitmine as an example, if we are viewed by the market as an ETF, our corresponding valuation is 1 times NAV. However, by staking ETH, we gain an annual yield of 3%, equivalent to net profit, which when calculated at a 20 times price-to-earnings ratio already brings a 0.6 times valuation increase, totaling 1.6 times NAV.
Secondly, there is a 'speed premium'. We grew from $4 per share of ETH to $23, far exceeding MicroStrategy's growth pace. MicroStrategy adds approximately $0.16 worth of Bitcoin daily, achieving a 0.6 times NAV premium; whereas we add $0.8 to $1 daily, which is nearly 12 times faster, theoretically commanding a higher premium.
Furthermore, there is liquidity. Our daily trading volume reaches $1.6 billion, second only to MicroStrategy, and this high liquidity naturally brings a valuation premium.
Host: Can this growth rate be sustained? Where will the liquidity come from?
Tom Lee: High liquidity supports high speed. The background of our team and investors is key: Mosaics (a macro hedge fund) led the investment, attracting top institutions like Founders Fund and Stan Druckenmiller. Additionally, my long-standing public support for the crypto industry since 2017 has strengthened market confidence in our vision.
In 2017, Bitcoin transformed from a retail asset to an institutional asset; in 2025, Ethereum is experiencing a similar moment.
Host: You mentioned the turning point of Bitcoin in 2017; how does that compare to the current situation of Ethereum?
Tom Lee: Our research at Fundstrat in 2017 found that Bitcoin's price rose from $100 to $1,000, primarily driven by the number of wallets and their activity, reflecting strong network effects. At that time, institutions were almost absent, and we faced skepticism and even lost clients, but ultimately Bitcoin rose to $120,000.
Today's Ethereum is in a similar situation: many Wall Street professionals still have doubts, questioning whether it is the 'main chain'. But the reality is that Ethereum has not experienced any downtime for 10 consecutive years, and on-chain activity is at an all-time high, with Circle's IPO and Layer 2 solutions from Coinbase and Robinhood all built on Ethereum.
Wall Street is beginning to realize that Ethereum is becoming the core infrastructure for financialization and tokenization.
Host: What is your outlook on the price of ETH this year or in this cycle?
Tom Lee: In the short term, ETH should at least return to the $4,000 level from December last year. Based on the ETH/BTC ratio of 0.05 at that time, given the current Bitcoin price, ETH should be around $6,000. Considering the continuous buying by other treasury companies and macro factors such as the Fed possibly lowering interest rates, ETH has a chance to reach the range of $7,000 to $15,000 by the end of the year.
In the long term, Bitcoin has achieved a hundred-fold increase. As the core asset of financialization and the AI era, ETH may have even greater potential and could surpass Bitcoin.
Host: How to value ETH? Based on transaction fees, DeFi storage value, or staking demand?
Tom Lee: It is difficult to accurately predict the fair price of ETH using spreadsheets, just as it is impossible to accurately predict the long-term trends of Bitcoin or the S&P 500. Market pricing reflects expectations for the next 5 to 10 years more than current trading data.
ETH is currently severely undervalued. While comparing Bitcoin to 'digital gold' and Ethereum to 'digital oil' has reference value, we should not be bound by these models.
Host: Will ETH treasury companies overheat? Is there a risk of a bubble burst similar to the investment trusts of the 1920s or GBTC?
Tom Lee: The premise of a bubble is that the market is unanimously bullish, but currently, whether it's ETH or Bitcoin, mainstream sentiment remains cautious or even pessimistic. As long as treasury companies do not abuse leverage, especially using compliant debt structures like MicroStrategy, they will not pose systemic risks.
At this stage, the market is more like 'overly skeptical' rather than 'overly optimistic', which is precisely the soil for price increases.
Host: What are your concerns regarding the macro economy?
Tom Lee: I am concerned about the politicization of institutions, especially the independence of the Federal Reserve and the Bureau of Labor Statistics (BLS). However, the overall economy is actually quite strong, despite many institutional clients mistakenly believing we are in a recession.
Over the past 30 years, no one has accurately predicted a recession. Now companies are generally cautious, with the ISM index below 50 for 29 consecutive months, similar to how 'tariff shocks' reset market confidence, helping to curb overheating. I believe we are still in the middle of the economic cycle, even in the early stages.
Host: What is Wall Street's biggest misunderstanding about Ethereum?
Tom Lee: They rely too much on spreadsheets, focusing on details like gas fees and stablecoin trading volumes, leading to 'analysis paralysis'.
The real issue is not what the models say, but the lack of a strategic perspective. The value of Ethereum as a compliant blockchain is becoming increasingly important, just like the undervalued S&P 500 of the past. It will become the infrastructure for financialization and the AI era, while the current market price is far below its real potential.
Click to learn about job openings at ChainCatcher
Recommended reading:
Dialogue with Oppenheimer's Executive Director: Coinbase's Q2 trading revenue fell short of expectations; which businesses will become new growth points?
Dialogue with TD Cowen's research director: A deep dive into Strategy's Q2 earnings report, what are the key factors behind the $10 billion net income?
