Original Title: The World's Largest ETH Holder - Tom Lee on Treasuries, Ethereum Dominance, and Wall Street

Guest: Tom Lee, Chairman of Bitmine

Podcast Date: August 6, 2025

Compiled by: Fairy, ChainCatcher

Editor’s Note:

Ethereum may be approaching its "sovereign narrative moment."

In just one month, Bitmine acquired 830,000 ETH, targeting nearly 1% of the global total supply. While most institutions are still observing, it has become the world's largest publicly listed ETH treasury company, driven not only by a bet on asset prices but also by a strategic positioning for the future of financial infrastructure.

This interview features a conversation with Tom Lee, Chairman of Bitmine, delving into Bitmine's grand vision and meticulous execution, exploring Ethereum's key role in financialization, compliant staking, and the AI era. This is not just an insight into digital asset allocation but also a forward-looking interpretation of a new round of institutional cycles 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 global ETH total supply, making it the largest publicly listed ETH treasury company in the world. How does that feel?

Tom Lee: The pace has indeed been rapid. From the announcement on June 30 to completion on July 8, we quickly acquired a large amount of ETH in just 27 days. MicroStrategy has validated the successful path of the treasury strategy, with its stock price soaring from $13 in August 2020 to the current level, achieving a 30-fold increase; Bitcoin rose from $11,000 to $120,000, bringing a 20-fold return just from asset appreciation.

I believe Ethereum is a significant macro trade for the next decade, and we hope to hold as much as possible while the ETH price is still around $3,500, to welcome explosive growth similar to Bitcoin's 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, almost simultaneously announcing similar plans. Why did these ETH treasury companies emerge within such a short time frame?**

Tom Lee: Perhaps it's a case of "great minds think alike." Sharpling was one of the first to announce a treasury strategy, publicly revealing its plans back in May, while we came a bit later.

There are several reasons why Ethereum is suitable as a treasury asset:

• First, if you are optimistic about ETH's long-term value, a treasury strategy is more attractive than an ETF because you can continuously buy and hold for the long term.
• Second, Ethereum is based on proof of stake (PoS), allowing for over 3% native yield through staking, essentially providing these companies with 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 us the 42nd most 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 that Bitmine's goal is to hold 5% of the ETH supply. Do you really plan to reach 5%? What is the execution path?

Tom Lee: MicroStrategy set a goal to hold 1 million Bitcoins, about 5% of the supply, which can be seen as a "sovereign call option," significant for the ecosystem at a strategic level. If the U.S. government wants to establish a Bitcoin reserve, direct market purchases would drive up prices, potentially pushing Bitcoin to $1 million. Holding a large amount of BTC makes MicroStrategy an easier acquisition target.

The logic is similar for ETH. Bitmine is currently net adding 8,000 to 10,000 ETH daily, increasing our holdings at a pace 12 times that of MicroStrategy. If we maintain this current pace, we expect to reach our 5% target within 1-2 years.

Our operations are entirely within the U.S., 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 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's not impossible, but we are not simply building positions for such a "sovereign option."

Imagine a future where the U.S. promotes blockchain in the financial system through legislation (like the hypothetical "Genius Act"), and Ethereum becomes the most important compliant underlying chain, supporting not only the U.S. but potentially being adopted by other countries. In such a context, the U.S. would naturally want to have a certain level of dominance over Ethereum.

Moreover, AI and asset tokenization have very high requirements for the security of the underlying chain. Bitmine has a clean balance sheet and a compliant operating model, which will play a key role in staking and other areas. We are about to announce our staking plan and will strictly adhere to U.S. Generally Accepted Accounting Principles (GAAP) and all regulatory requirements.

ETH treasury companies are not just asset holders; they are 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 $4,000. Where did these ETH come from? Why was there no significant market fluctuation?

Tom Lee: In the short term, the ETH price is influenced by various factors, such as liquidation structures, trading hedges, and even some people still considering Ethereum a "dead chain" and shorting it. A similar situation occurred with Bitcoin in 2017 when the price hovered around $1,000 before a significant surge. I believe ETH is currently in a similar phase, with Wall Street just beginning to pay real attention to it. In the long run, 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 and believe 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, an ETH ETF may not meet fund investment parameters, while a treasury company provides a compliant and efficient alternative. Well-known institutions like Cathie Wood and Bill Miller support Bitmine precisely because it allows them to directly participate in the macro opportunity of ETH.

Additionally, Ethereum's DeFi ecosystem provides more tools for treasury strategies, such as further 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 primarily comes from three aspects: yield, growth rate, and liquidity.

Taking Bitmine as an example, suppose we are viewed by the market as an ETF, corresponding to a valuation of 1 times NAV. However, we earn an annualized 3% yield through staking ETH, which is equivalent to net profit. Calculating at a 20 times price-to-earnings ratio, this alone brings a 0.6 times valuation increase, totaling 1.6 times NAV.

Next is the "speed premium." We grew from $4 per share of ETH to $23, far exceeding MicroStrategy's growth pace. MicroStrategy adds about $0.16 worth of Bitcoin daily, achieving a 0.6 times NAV premium; meanwhile, we add $0.8 to $1 daily, nearly 12 times faster, theoretically justifying a higher premium.

Lastly, liquidity. Our stock has a daily trading volume of $1.6 billion, second only to MicroStrategy, and this high liquidity naturally brings a valuation premium.

Host: Can this growth rate be sustained? Where does the liquidity come from?**

Tom Lee: High liquidity supports high speed. The backgrounds of our team and investors are key: Mosaics (a macro hedge fund) led the investment, attracting top institutions like Founders Fund and Stan Druckenmiller. Additionally, I have been publicly supporting the crypto industry since 2017, which has also strengthened market confidence in our vision.

In 2017, Bitcoin transitioned from a retail asset to an institutional asset; in 2025, Ethereum is experiencing a similar moment.

Host: You mentioned the turning point for Bitcoin in 2017. How does that compare to the current situation with Ethereum?**

Tom Lee: In 2017, our research at Fundstrat found that Bitcoin's price rose from $100 to $1,000, primarily driven by wallet numbers and activity, reflecting a strong network effect. At that time, institutions were almost entirely absent, and we faced skepticism and even lost clients, but ultimately Bitcoin rose to $120,000.

Today's Ethereum is in a similar position: many on Wall Street still harbor doubts, questioning whether it is the "main chain." But the reality is that Ethereum has operated for 10 consecutive years without downtime, with on-chain activity reaching all-time highs. Circle's IPO, as well as Coinbase and Robinhood's Layer 2 solutions, are 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 for the price of ETH this year or in this cycle?

Tom Lee: In the short term, ETH should at least return to last December's $4,000. Based on the ETH/BTC ratio of 0.05 at that time, with the current Bitcoin price, ETH should be around $6,000. Considering the continuous buying from other treasury companies and macro factors like potential interest rate cuts from the Federal Reserve, ETH has a chance to reach the $7,000 to $15,000 range by the end of the year.

In the long term, Bitcoin has achieved a hundredfold increase. As a core asset in the financialization and AI era, ETH may have even greater potential and could surpass Bitcoin.

Host: How do you value ETH? Based on transaction fees, DeFi storage value, or staking demand?**

Tom Lee: It's difficult to accurately predict ETH's fair price using spreadsheets, just as you can't precisely forecast the long-term trends of Bitcoin or the S&P 500. Market pricing reflects more of the expectations for the next 5 to 10 years rather than current trading data.

ETH is currently severely undervalued. While comparing Bitcoin to "digital gold" and Ethereum to "digital oil" has reference value, we shouldn't be confined to these models.

Host: Could ETH treasury companies become overheated? Is there a risk of a bubble burst similar to the 1920s investment trusts or GBTC?

Tom Lee: The premise of a bubble is a market consensus on bullish sentiment, but currently, whether for ETH or Bitcoin, mainstream sentiment remains cautious or even pessimistic. As long as treasury companies do not abuse leverage, especially those like MicroStrategy that adopt compliant debt structures, systemic risk will not arise.

At this stage, the market is more in a state of "over-skepticism" rather than "over-optimism," 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, particularly the independence of the Federal Reserve and the Bureau of Labor Statistics (BLS) being questioned. However, the overall economy is actually quite strong, even though many institutional clients mistakenly believe we are in a recession.

For the past 30 years, no one has accurately predicted a recession. Currently, businesses are generally cautious, with the ISM index remaining 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, or 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, resulting in "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 S&P 500 was once undervalued. It will become the infrastructure for financialization and the AI era, while current market prices are far below its true potential.

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