The digital asset treasury (DAT) sector has faced a correction, according to Tom Lee, chairman of BitMine, in an interview with Fortune.
“If this isn’t a burst bubble, then what is?” he remarked.
According to the expert, currently, 80% of firms focused on accumulating cryptocurrencies are trading below the net value of their crypto assets. The market values these companies lower than the tokens they hold.
However, this indicates not a collapse but increased selectivity among investors, Lee emphasized.
BitMine is the largest corporate holder of Ethereum. Following the recent purchase of 104,336 ETH, the firm’s assets under management reached 3.03 million ETH, valued at $11.4 billion.
In second place is SharpLink Gaming. The company began accumulating the second-largest cryptocurrency by market capitalization in June, and on October 16, announced a $76.5 million stock sale to bolster its Ethereum reserves.
The firm has already issued 4.5 million shares at $17 each—12% above the previous closing level. Investors were also given a 90-day option to purchase an additional 4.5 million shares at $17.5.
Despite optimistic forecasts of 200% growth potential and successful issuance, SharpLink’s shares are falling. Over the past month, the price has dropped by more than 14%, and its market capitalization has fallen below $3 billion compared to $4 billion in August.
At the time of writing, 71 companies have included Ethereum in their reserves. A total of 5.9 million ETH, worth $22.2 billion, has been accumulated—4.8% of the total supply of the asset.
A Bold Prediction
Lee also suggested that the leading altcoin could surpass digital gold in market capitalization. In an interview with ARK Invest CEO Cathie Wood, he drew a historical parallel:
“Ethereum could outshine Bitcoin just as Wall Street and stocks eclipsed gold after 1971.”
The BitMine chairman referred to the “Nixon shock”—a series of economic reforms that resulted in the US dollar becoming “fully synthetic,” losing its backing by precious metals.
“The immediate beneficiary then was gold, but Wall Street created products that made the dollar the dominant currency. By the end of that period, the dollar’s share in global reserves rose from 27% to 57%, and in financial transactions, it reached 80%,” Lee stated.
At the time of writing, Ethereum’s market value stands at $458 billion, while Bitcoin’s is $2.1 trillion.
The dominance of the US currency will become an opportunity for Ethereum through tokenization, Lee added. He believes that as stablecoins grow, more stocks and real estate will be moved to the blockchain.
Back in September, a similar view was expressed by ConsenSys founder Joseph Lubin. He believes that mass adoption by institutional players will lead to a 100-fold increase in the ETH price.