Will Institutions Buy Crypto After Ethereum's Q3 Run? Tom Lee Thinks So

BitMine Immersion Technologies chairman Tom Lee expects institutions to buy crypto after a strong quarter so far. The firm holds 5.9 million Ethereum (ETH) tokens that sit far below their purchase cost.

The company valued its combined crypto, cash, and equity holdings at $15.7 billion on September 7.

Lee Points to a Quarter Crypto Led

In the firm’s weekly update, Lee said ETH has been the best-performing macro asset during the quarter. He put its lead over the S&P 500 at 5,430 basis points through last Friday. ETH, Bitcoin (BTC), and Solana (SOL) rank as the top three assets since June 30.

He tied that run directly to institutional demand.

“We believe this sets the stage for institutions to add to their crypto holdings given the substantial outperformance of crypto versus other macro assets in calendar Q3 so far,” Lee said.

The statement came alongside a buying update. BitMine acquired 28,086 ETH over the past week, lifting total holdings to 5.9 million tokens.

Each purchase pulls the firm closer to 5% of the supply and deeper into a position that is underwater. CryptoQuant data puts the unrealized losses at roughly $5 billion.

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ETH’s rally has narrowed that shortfall. The token has added 29.7% over the past month, according to BeInCrypto Markets data. Still, the gap before the position turns green remains wide.

Staking Revenue Softens the Blow

BitMine is not waiting on price alone to close the gap. The firm has staked over 5 million ETH, or 85% of its holdings. 

Lee put annualized staking revenue at $330 million. The staking reward climbs to $386 million at scale, using a 7-day yield of 2.61%.

Meanwhile, the stock has also benefited from the crypto rally. Lee said BMNR gained 99% quarter-to-date, ranking fourth in the Russell 1000 index.

BitMine needs roughly 171,000 more tokens to reach 5%. At last week’s pace, that takes about six weeks.

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