Tom Lee, the chairman of BitMine and one of the most recognized voices in institutional crypto analysis, has declared that the digital asset treasury (DAT) sector is experiencing a major correction, calling it a “burst bubble.” In a recent interview with Fortune, Lee warned that nearly 80% of crypto-focused firms now trade below the net value of their underlying crypto assets, a sharp signal that investors are reassessing risk and valuation in this emerging niche.
“If this isn’t a bursting bubble, then what is?” said Lee, emphasizing that the current downturn doesn’t indicate a total collapse but rather reflects investor maturity and greater selectivity in allocating capital to blockchain-based treasury firms.
BitMine, which recently expanded its holdings by acquiring 104,336 ETH, now controls an impressive 3.03 million Ethereum—valued at around $11.4 billion—solidifying its position as the largest corporate holder of ETH. Following closely behind is SharpLink Gaming, which began accumulating Ethereum in mid-2025 and recently announced a $76.5 million share sale to bolster its reserves.
SharpLink issued 4.5 million shares at $17 each, 12% above its previous close, with an option to sell an additional 4.5 million shares at $17.5 within 90 days. However, despite this optimistic fundraising and analysts forecasting potential 200% growth, SharpLink’s stock price has fallen more than 14% over the past month, dropping its market capitalization from $4 billion in August to below $3 billion.
As of this writing, 71 companies have added Ethereum to their balance sheets, collectively holding 5.9 million ETH, worth $22.2 billion, representing 4.8% of Ethereum’s total supply. Analysts see this trend as part of a broader institutional shift toward digital asset diversification beyond Bitcoin.
In a bold forecast, Lee predicted that Ethereum could surpass Bitcoin in market capitalization, comparing the situation to how Wall Street overtook gold in dominance after 1971. He referred to the historical “Nixon Shock,” when the U.S. dollar was detached from the gold standard, allowing financial innovation to drive global monetary dominance.
“Ethereum could achieve the same with tokenization,” Lee explained. “As stablecoins and real-world assets migrate to blockchain, Ethereum’s utility could outpace Bitcoin’s role as a store of value.” Currently, Ethereum’s market cap stands at $458 billion, while Bitcoin maintains around $2.1 trillion.
This perspective aligns with ConsenSys founder Joseph Lubin, who has also predicted a 100x increase in ETH’s value as institutional adoption accelerates. Both experts highlight tokenization and decentralized finance (DeFi) as the primary catalysts for Ethereum’s future growth.
Conclusion:
While Tom Lee’s declaration of a “bursting bubble” in the digital asset treasury sector might sound alarming, it reflects a maturing crypto economy rather than a breakdown. As investors become more selective and capital shifts toward fundamentally sound blockchain ecosystems, Ethereum’s growing dominance could mark the next chapter of institutional digital finance—one where blockchain utility trumps speculation.
