BitMine Immersion Technologies Inc. (NYSE:BMNR) Chair Tom Lee made a case on Thursday that Ethereum (CRYPTO: ETH) is bottoming and entering the next phase of mainstream adoption
Crypto Winter Over?
In his latest message to shareholders, Lee said that the “crypto spring is here.”
He cited the research of Tom DeMark, a popular technical analyst and Bitmine Immersion’s timing advisor for cryptocurrency acquisitions, who believes everything is set for a “market bottom” and that the “Ethereum risk-reward is to the upside.”
DeMark’s model sees Ethereum today as analogous to the S&P 500 in 1987, projecting around $2,200 for the cryptocurrency in August
ETH 2.0 To Be Exponential, Says Tom Lee
Lee said Ethereum’s future market is primed for “exponential” growth, adding that it’s transitioning to its 2.0 phase.
“I think people are rage-quitting at the bottom for Ethereum here,” the Wall Street analyst said.
Lee said that, unlike the 2022 bear market, “Wall Street is now building on Ethereum” and accelerating tokenization efforts on the blockchain.
Earlier this week, Lee said that Ethereum is “grossly undervalued” compared to Bitcoin (CRYPTO: BTC), gold and stocks.
BitMine Records Unrealized Losses
Bitmine holds 5.77 million ETH worth $10.2 billion, the largest ETH treasury in the world and the second-largest cryptocurrency treasury overall behind Strategy Inc. (NASDAQ:MSTR).
The company posted $46.5 million in revenue for the quarter ended May 31, a 22x jump from a year earlier. On the other hand, it reported a $9 billion loss as falling ETH prices hit the value of its holdings on paper.
Price Action: At the time of writing, ETH was exchanging hands at $1,828.40, down 4.72% over the last 24 hours, according to data from Benzinga Pro. The coin has gained 3.22% over the week, but is down nearly 40% year-to-date.
BitMine shares were down 5.92% in Friday’s pre-market trading after closing 2.22% lower at $23.02 during Thursday’s regular session.
The BMNR stock exhibited weaker short-, medium-, and long-term price trends, according to Benzinga’s Edge Stock Rankings
Photo courtesy: Zakharchuk on Shutterstock
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