Tom Lee takes the lead! Does the transformation of Bitmine (BMNR.US) into the world's largest ETH reserve point to the myth that MSTR has skyrocketed?

The Zhitong Finance App learned that under the impetus of Tom Lee, the most famous cryptocurrency bully on Wall Street and Fundstrat analyst Tom Lee, Bitmine Immersion Technologies (BMNR.US) has transformed from a company focused on Bitcoin mining to a leading global Ethereum reserve company, and has been developing rapidly recently. According to information, Bitmine continues to accumulate Ether through additional capital raising and strategic acquisitions, and its strategy follows Michael Saylor's operating model through Strategy (MSTR.US). The company aims to hold 5% of the total amount of Ether in circulation worldwide.

As far as investments are concerned, although most investors may prefer to hold Ethereum directly, SeekingAlpha analyst Steven Fiorillo believes that Bitmine has the potential for explosive growth — its Ether holdings have leveraged upward room and may receive a premium far above net asset value.

Fiorillo pointed out that as the amount of Ether reserves increases, Bitmine's net asset value will grow at the same time, and if Ether is in an upward channel, investors may obtain excessive returns. If it can actually achieve the 5% circulation target, Bitmine will enhance network effects and scarcity, thereby outperforming the earnings performance of directly holding Ether. This has been verified in the history of Bitcoin Reserve Companies that have surpassed the Bitcoin price increase.

Although Bitmine still retains part of the Bitcoin business, its value is gradually becoming highly tied to Ethereum. Fiorillo is more optimistic about the future of Ethereum because he believes that Bitcoin only has a storage function and lacks practical utility. The switch to Ethereum will give Bitmine more exposure to the cryptocurrency ecosystem, including huge staking earnings and DeFi integration opportunities.

According to the data, as of August 11, Bitmine increased its holdings of 316,863 Ether in a single week, and its total holdings soared from 833,137 to 1.15 million, making it the world's largest Ethereum reserve institution and the third largest cryptocurrency asset reserve company in the world. At current prices, the net asset value of Ether holdings alone is US$5.2 billion, while its total market value is US$6.33 billion.

Overall, Fiorillo is optimistic about Ether, believing that its unit price will rise significantly in the next few years, which will drive Bitmine's stock price to a premium over its Ether assets. Bitmine is likely to continue to raise additional capital, expand its net asset value and Ethereum reserves, and drive leaps and bounds in market capitalization.

Why I'm so optimistic about Bitmine

Under the leadership of veteran Wall Street analyst and cryptocurrency advocate Tom Lee, Bitmine transformed from an immersive Bitcoin mining expert to a pioneer in the aggressive layout of Ether reserves. This strategy has led to large-scale financing activities, including the recent expansion of stock issuance to $24.5 billion and positioning it as the acquisition of 5% of circulating Ether.

Bitmine launched the Ether Reserve Program on June 30, and has now become the world's largest Ether reserve company with 1.15 million Ether (worth US$5.2 billion). The company is still operating mining and escrow services, and diversified revenue channels will complement its Ethereum strategy. By issuing shares to acquire Ethereum, Bitmine follows Strategy's strategy and adapts to the Ethereum smart contract ecosystem. In the future, it may increase shareholder value through staking earnings and DeFi integration.

When Strategy started, the stock price was 13.49 US dollars, and the price of Bitcoin was 11,000 US dollars; by the end of June 2025, Bitcoin had risen 11 times to 118,000 US dollars, and Strategy's stock price had soared 30 times to 407.76 US dollars. Bitmine rose 9.5 times before the end of June, and Ethereum only rose 1.5 times during the same period. The current reserve strategy may make Bitmine's stock price continue to outperform Ethereum in the future.

From a functional perspective, Ethereum is a decentralized open source blockchain platform that allows end users to create and execute smart contracts and decentralized applications (dApps). Its peer-to-peer network is maintained by a global cluster of computers running Ethereum software, and participants share transaction ledgers without the need for intermediaries such as banks or governments.

A smart contract is a self-executing program stored on a blockchain that automatically runs when pre-set conditions are met (such as transferring money or executing transactions), supporting all kinds of dApps from decentralized financial platforms to games and social networks. Stablecoins are cryptocurrencies with stable value, connecting traditional finance and the cryptocurrency world through fast and low-cost transactions.

With its widespread adoption, Ethereum has become the core platform for building and issuing stablecoins — its smart contract system can maintain stablecoin anchoring through automated mechanisms such as collateral, algorithmic regulation, or reserves managed by decentralized autonomous organizations.

USDC issued by Circle (CRCL.US) is built on Ethereum's secure and expandable environment and enjoys high liquidity and interoperability. The ERC-20 token standard streamlines the creation and integration process, making it easy for stablecoins to interact with DeFi protocols, exchanges, and wallets in the network.

As a leading smart contract blockchain, Ethereum currently powers thousands of dApps, DeFi protocols, and stablecoins, and its utilization rate will continue to increase. The tokenization of real assets, such as bonds and real estate, is more likely to push Ethereum into the mainstream.

BlackRock (BLK.US) recently increased its Ether holdings by US$338 million, and SharpLink Gaming (SBET.US) has acquired more than US$3 billion of Ether since May, and institutional interest continues to heat up. Currently, the value of assets locked on the Ethereum chain has reached 411 billion US dollars. As more assets are tied to it, leading institutions are increasing their holdings on a large scale.

The core logic of Fiorillo's optimism about Bitmine is that it provides leveraged Ether exposure and should receive a higher net asset value premium in the future. As an Ethereum reserve institution, Bitmine can outperform the benefits of directly holding Ethereum by creating market scarcity through staking.

Furthermore, the advantages of Bitmine as a traditional stock exchange on the NYSE should not be underestimated: investors can buy through standard brokerage accounts to avoid the wallet management, private key security, and custodian risks of cryptocurrency exchanges. Bitmine is an ideal choice for institutions that don't want to directly hold cryptocurrencies but want to allocate such assets.

The GENIUS Act, which was recently signed into law, establishes the first federal stablecoin regulatory framework in the US and aims to encourage innovation in the cryptocurrency sector. Given Ethereum's dominant position in the stablecoin ecosystem, the bill will enhance its liquidity and make it a compliant real-world asset tokenization and payment center. Ethereum is still in the early stages of development. As application scenarios expand, its price may rise sharply, and Bitmine, as a large holder of Ethereum, will receive leveraged premium benefits.

Risk Alerts

Despite being optimistic about Ethereum and Bitmine, this does not guarantee that the investment will necessarily be profitable. Investing in Bitmine is essentially an indirect investment in Ethereum. Although it has become the world's largest holder of Ether, Ethereum itself is still a highly volatile speculative asset.

If the price of Ethereum falls, Bitmine's stock price may fluctuate violently because its asset structure is highly concentrated on Ethereum. Furthermore, Bitmine frequently issues new shares through market issuances and public sales, which may lead to dilution of shares. Issuing additional shares to acquire Ether will reduce the equity corresponding to a single share of Ether, thereby suppressing the stock price.

Regulatory risks can't be ignored either — US and global regulations are likely to change. Ethereum also faces competitive threats from central bank digital currencies. If stablecoins built on Ethereum fail to achieve large-scale ETF application, or if the asset tokenization process is blocked, the practical value of Ethereum will decline, causing the price to plummet and trigger huge losses for Bitmine. Investors need to make independent due diligence on Ethereum and Bitmine before investing. Note that these are not traditional stocks, and the risk level is significantly higher.

Summarize

Bitmine's bullish logic is deeply tied to the increased utilization rate of the Ethereum ecosystem. The GENIUS Act paves the way for large-scale application, and the future possibilities of Ethereum are only just beginning to be revealed. The past decade has proven the trend of digitalization of everything. Ethereum may become a bridge between asset tokenization and stablecoin issuance, driving the institutional adoption process. Tom Lee called Ethereum the most important macro transaction in the next 10-15 years, predicting that the unit price could reach $25,000 in 2028.

Although investing in Bitmine is extremely risky, if decentralized finance platforms achieve large-scale adoption, considering that Bitcoin currently costs about $118,000 and is far less effective than Ethereum, Ethereum may usher in huge purchases. If this scenario comes true, Bitmine, as the largest holder of Ether, will unleash huge value—the premium of its stock price compared to its net asset value may allow investors to earn far more than directly holding Ethereum.