BitMine Immersion Technologies Chairman Tom Lee expects institutional investors to expand their cryptocurrency holdings following a strong third-quarter performance. The company holds 5.9 million Ethereum tokens, which currently sit below their overall purchase cost.
On September 7, BitMine valued its combined crypto, cash, and equity holdings at $15.7 billion. In a weekly update, Lee noted that Ethereum has been the best-performing macro asset during the quarter, pointing to a lead over the S&P 500 of 5,430 basis points through the previous Friday. Ethereum, Bitcoin, and Solana rank as the top three assets since June 30, a run Lee attributes 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.
This outlook accompanied a buying update showing BitMine acquired 28,086 Ethereum over the previous week, raising its total holdings to 5.9 million tokens. The ongoing purchases bring the firm closer to controlling 5% of the asset's supply, while keeping its position underwater. According to CryptoQuant data, the firm faces roughly $5 billion in unrealized losses.
Although Ethereum's recent rally has narrowed the shortfall—with the token gaining 29.7% over the past month—a wide gap remains before the position becomes profitable. To help offset losses, BitMine has staked over 5 million Ethereum, representing 85% of its holdings. Lee reported that annualized staking revenue stands at $330 million, with scaled rewards reaching $386 million based on a 7-day yield of 2.61%.
The broader crypto rally has also supported the company's stock. Lee stated that BMNR shares gained 99% quarter-to-date, placing the stock fourth in the Russell 1000 index. BitMine requires approximately 171,000 more tokens to reach the 5% supply milestone, a target that would take about six weeks at the acquisition pace maintained last week.
