Ethereum: Tom Lee Links Crypto Decline to AI Concerns

Bitmine Immersion Technologies has purchased an additional 12,535 ETH, bringing its reserves to 6.04 million units. The company is thus approaching its goal of holding 5% of the Ether supply, while its president, Tom Lee, attributes the recent market downturn to concerns related to artificial intelligence and the macroeconomic context.

In Brief

• Bitmine buys an additional 12,535 ETH for nearly $30 million.
• The company now holds 6.04 million ETH, valued at $14.5 billion.
• Its reserves represent nearly 4.9% of the Ether supply, against a target of 5%.
• Tom Lee plans to stop purchasing ETH once this target is reached.
• Bitmine stakes nearly 84% of its ETH to generate income.

Bitmine Adds Nearly $30 Million in Ether

Bitmine announced on October 19 the acquisition of 12,535 ETH. This purchase represented approximately $29.6 million at the price set by the company. A week earlier, it had already added 12,532 ETH to its balance sheet.

The company continues its weekly purchases despite the decline in crypto prices. The key figures published allow for measuring the extent of this strategy:

• Bitmine now holds 6,041,481 ETH;
• These reserves are worth nearly $14.5 billion;
• They represent about 4.9% of the circulating supply;
• The company still needs to acquire about 63,500 ETH to reach 5%;
• Its total assets amount to $15.1 billion;
• This amount was $16.2 billion a week earlier.

The decrease in the total value of the portfolio does not mean that Bitmine has sold a significant portion of its Ethers. It primarily reflects the decline in the price of ETH, which was around $2,400 at the time of calculation.

Bitmine also holds $17.6 million in bitcoin, $582 million in cash and negotiable securities, as well as several strategic investments. These include a $180 million stake in Beast Industries and another $74 million in Eightco Holdings.

This accumulation makes Bitmine the largest publicly traded company specializing in an Ether treasury. However, it still lags behind Strategy in the overall ranking of cryptocurrency-holding companies. Michael Saylor's company possesses a bitcoin reserve valued at approximately $69.5 billion.

The 5% Goal Approaches Its Final Limit

Bitmine launched its Ethereum treasury strategy on June 30, 2025. Its goal is to control 5% of the ETH supply, a threshold that the company presents as a crucial milestone in its financial model.

Tom Lee recently clarified that Bitmine would stop its purchases once this target is reached. With about 63,500 ETH still needed, the company could soon end an accumulation that has been a regular source of demand in the market.

The group is also looking to generate income through staking. As of October 18, it had staked 5,067,309 ETH, or nearly 84% of its holdings. This activity would generate approximately $309 million in annualized rewards at current yields.

Bitmine estimates that these revenues could reach $369 million per year if all its Ethers were staked. This projection remains variable, as it depends on network yield, crypto prices, validator performance, and operating costs.

The concentration of such a large amount of Ethereum also carries risks. A drop in the token directly reduces the value of Bitmine's balance sheet. Additionally, a decline in its stock price could complicate future capital raises.

Tom Lee Links Crypto Decline to AI Concerns

Ether has lost about 11.5% in two weeks, compared to 4.4% for bitcoin. Tom Lee attributes this decline to a general contraction in investors' risk appetite, rather than a deterioration specific to the Ethereum network.

According to him, several factors have simultaneously weighed on the markets: questions about AI funding, doubts regarding model security, tensions between the U.S. and Iran, the U.S. midterm elections, and the global rise in bond yields.

Tom Lee stated:

Investors' appetite for risk has contracted in recent weeks.

He believes that the decline in semiconductor-related stocks has then spread to the South Korean and Taiwanese markets, and subsequently to cryptocurrencies.

This explanation remains that of Bitmine's president. It does not prove that concerns surrounding AI are the sole cause of Ethereum's decline. Interest rates, institutional flows, and leveraged selling also influence the market.

Nevertheless, Bitmine considers the current decline as a buying opportunity. Its proximity to the 5% target will soon allow for verifying another point: the ability of Ether to maintain solid demand once its main regular institutional buyer ceases its acquisitions.