Tom Lee brushed aside Ethereum’s recent sell off, arguing that the asset’s declining price does not reflect its underlying fundamentals. BitMine added 41,788 ETH last week as Lee described the pullback as an attractive opportunity amid rising on chain activity.
Ethereum’s price dropped sharply over the weekend, falling from about $2,900 to nearly $2,100 as selling pressure increased. Although prices have stabilized slightly as of Tuesday, ETH is still down more than 26 percent over the past month.
Despite fading investor sentiment, Fundstrat’s head of research Tom Lee said Ethereum’s weakness stems from a lack of leverage in the market and a strong rally in gold rather than any deterioration in the network’s fundamentals.
Aggressive Buying Spree
BitMine, one of the largest Ethereum treasury firms, has continued accumulating ETH during the recent downturn. Lee, who also serves as the company’s chairman, said current prices are appealing given what he views as improving network strength.
He explained that BitMine has been steadily purchasing Ethereum because the company believes the recent decline offers value in light of strengthening fundamentals. In his view, Ethereum’s price does not accurately reflect its high utility or its role in shaping the future of finance.
Ethereum’s sharp price drop over the past month comes even as daily transactions hit a record 2.5 million and active addresses climbed to an all time high of one million per day in 2026. Lee noted that in previous crypto downturns, on chain activity typically declined. He argued that the current price weakness appears driven by external factors such as limited leverage and rising precious metals prices rather than fundamental issues.
These remarks followed reports suggesting BitMine was carrying more than $6.9 billion in unrealized losses on its Ethereum holdings.
No Pressure To Sell ETH
As of February 2, BitMine reported total crypto and investment assets worth $10.7 billion. This includes 4,285,125 ETH, 193 Bitcoin, a $200 million stake in Beast Industries linked to MrBeast, a $19 million stake in Eightco Holdings, and $586 million in cash.
The company said its balance sheet consists of roughly $10.1 billion in crypto and investments. Its Ethereum holdings generate staking rewards at a composite staking rate of 2.81 percent, while cash holdings earn money market yields ranging from 3.5 to 3.9 percent.
BitMine has no outstanding debt, which Lee said allows the firm to weather crypto market volatility while generating recurring income. He added that there is no pressure to sell Ethereum since there are no debt covenants or related constraints. As of February 1, the company had staked 2,897,459 ETH valued at approximately $6.7 billion. This reflects an increase of 888,192 ETH over the past week and represents part of its total Ethereum holdings.
The amount of staked ETH has risen steadily from 408,627 ETH at the end of December 2024. BitMine said it is currently working with three staking providers as it prepares to launch its commercial MAVAN validator network in 2026. According to Lee, the company acquired an additional 41,788 ETH over the most recent week, continuing a pattern of consistent weekly purchases throughout January.
