• Arkham reports Tom Lee’s $415 million Ethereum purchase linked to large exchange withdrawals.
• Lee warns that the digital asset treasury (DAT) sector may already be experiencing a market bubble.
• BitMine, valued at $15 billion, now holds over 3 million Ethereum tokens, aiming to double its share.

Recent blockchain data revealed significant Ethereum movements traced to BitMine Chairman Tom Lee. Arkham reported that two wallets withdrew $185 million in ETH from Kraken, following a $231.5 million withdrawal from BitGo the day before.

Combined, these transactions total $415 million and align with BitMine’s typical purchase behavior. These transfers have sparked speculation that BitMine is expanding its Ethereum holdings amid growing uncertainty in the digital asset treasury (DAT) market.

Lee’s decision comes as Ethereum remains one of the most traded assets in institutional portfolios. Despite facing competition from newer blockchains and scalability issues, Ethereum continues to attract attention from major investors.

Lee, known for his early Bitcoin advocacy, has shifted his focus to building BitMine into Ethereum’s largest institutional holder.

Also Read: Ethereum Price Prediction: Could Institutional Buying Drive Ethereum to $10K?

Digital Asset Treasuries Face Bubble Concerns

Tom Lee indicated he was worried that the digital asset treasury space may well be in the midst of a bubble. 

DATs, which are sitting with enormous reserves in cryptocurrencies such as Bitcoin and Ethereum, gained popularity among investors who were looking at indirect access in the publicly traded shares format.

The growing list of DATs now trading below their net crypto asset value, however, has caused overvaluation concerns.

Lee compared the move with earlier market manias, and he believes that speculative fervor and fast growth have driven valuations too high, far above sustainable levels.

Most new DATs, especially those with lesser-known altcoins like Worldcoin, are having trouble keeping the faith with investors. Some critics are cautioning that the industry may be due for a large correction like earlier crypto collapses.

BitMine Strengthens Ethereum Position Amid Uncertainty

BitMine’s increasing influence within the Ethereum market reflects Lee’s plan for building the firm as a connector between classical finance and blockchain technology.

With a market cap in excess of $15 billion, BitMine controls more than 3 million Ethereum, which represents approximately 2.5% of the total available supply.

Lee plans to grow the share up to 5% and put BitMine among classical financial giants in the process of integrating blockchain assets.

By owning Ethereum directly, BitMine can also benefit from staking rewards and coverage in large-scale equity indexes. The corporate plan replicates Michael Saylor’s move with MicroStrategy’s Bitcoin reserves, but with a focus on Ethereum.

Despite market doubt, however, Lee believes Ethereum remains the first choice among financial institutions designing tokenized assets and stablecoins.

Also Read: Ethereum Bulls Forecast $10,000 by Year-End as Corporate Interest Soars