ETHEREUM GONE WILD - The Wolf Den #1158
140% off the lows.
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In This Issue:
Pop The Champagne - It’s ETH Time
Bitcoin Thoughts And Analysis
Legacy Markets
ETH Inches Closer To 100% Of Addresses In Profit
The President’s Son Is Back To Bull Posting
David Bailey Is Smashing Buying BTC Today
Do Kwon May Plead Guilty
Bitcoin Near Record Levels - Will The Crypto Rally Go Parabolic? | Macro Monday
Pop The Champagne - It’s ETH Time
How can I not talk about ETH today?
By the time you read this, the price could be anywhere – but right now, ETH sits just 10–15% below its all-time high. In this market, that kind of move could happen in days… or even hours.
Hard to believe we were at these levels just four months ago:
From the $1,386 low to roughly $4,350, ETH has climbed an impressive 141.7%. Not bad.
It’s wild to see ETH closing in on its all-time high while SOL still sits about 60% below its peak. I’m not knocking Solana – I own it too – but earlier this year, SOL hit a fresh all-time high, and the consensus narrative was that it had overtaken ETH… that SOL had definitively “won.”
A lot can change quickly in crypto.
Today, I want to focus on two ETH-specific topics: BitMine, and the different ways to get ETH exposure.
Let’s start with this headline:
Tom Lee is becoming the Michael Saylor of ETH – no question about it.
As of this headline, BitMine is now the third-largest treasury company in all of crypto, behind only Strategy and Mara – an incredible feat given how young the company is.
And there’s more…
Tom Lee recently said: “In just a week, BitMine increased its ETH holdings by $2.0 billion to $4.96 billion (from 833,137 to 1.15 million tokens) – lightning speed in the company's pursuit of the ‘alchemy of 5%’ of ETH. We are leading crypto treasury peers by both the velocity of raising crypto NAV per share and by the high trading liquidity of our stock.”
Below is a reference showing how much BTC Strategy has been purchasing on a weekly basis.
Last week’s $2 billion jump for BitMine is roughly the same size as Strategy’s recent purchase of 21,021 BTC – one of its largest Bitcoin buys in its five-year history. For context, BitMine’s market cap is about $7 billion, compared to Strategy’s $115 billion. That’s like a featherweight fighter (around 145 lbs) with a couple of years of training throwing punches as hard as a heavyweight (over 205 lbs) who’s been in the octagon for decades.
At its current pace, BitMine could become the second-largest crypto treasury company in just about a week. Marathon’s BTC holdings are still worth roughly $1 billion more than BitMine’s ETH, but just last week, BitMine spent $2 billion to add to its stack. This is breakneck speed and volume right out of the gate.
Considering BitMine has only been in the ETH acquisition game for a few weeks and is already 6.7% the size of Strategy is remarkable. I don’t think this pace will last long enough to close the gap entirely – but it could keep chipping away over the coming months, especially if Tom Lee stays committed to acquiring 5% of ETH’s total supply. At current prices, that target would be nearly $26 billion.
Another angle worth noting is the supply dynamics between BTC and ETH in corporate treasuries. Bitcoin treasuries currently hold about 3.65 million BTC – roughly 17.4% of total supply, and potentially 20–25% if you factor in lost coins. Ethereum, by comparison, has only about 4.89% of its supply in treasuries. That leaves plenty of room for ETH to catch up and even outperform BTC in terms of percentage acquired relative to market cap in the months ahead.
Also, ETH likely has a far smaller percentage of lost supply compared to BTC, meaning it needs significantly more active buying to match Bitcoin’s scarcity-driven price impact. BTC benefits from its effective scarcity – allowing treasury buyers to move the market with a smaller percentage of the supply.
Bottom line – Tom Lee is making it nearly impossible for BitMine’s competitors to keep up.
To think all this happened in just five weeks. The best part isn’t just that Tom Lee is buying a metric f**k ton of ETH – he’s introducing the asset to Wall Street. ETH investors are finally on the right side of both momentum and sentiment.
Now, let’s take a step back and look at the bigger picture. Here’s a quick guide to the different ways you can get ETH exposure – especially useful for newcomers trying to make sense of all this.
1. Buying Ethereum (ETH) Directly
The most obvious and straightforward method is simply owning ETH. This gives you full exposure to price movements and the underlying network. You get all the upside, but also the usual risks like volatility and the need to secure your tokens. This is the safest, most beginner-friendly approach – and my number one recommendation.
2. Ethereum ETFs
BlackRock’s Ethereum ETF ($ETHA) offers 1:1 spot exposure without the hassle of managing private keys. It’s backed by institutional credibility, and you can even write covered calls on it to generate extra income. For most traditional investors, this is one of the safest and most convenient entry points.
3. Staked ETH
Locking up your ETH for staking earns around 2% annually. It’s ideal for long-term holders who want passive income while supporting Ethereum’s proof-of-stake network. Alternatively, liquid staking tokens (LSTs) offer flexibility with similar rewards – but they come with added DeFi complexity and risk.
4. Crypto Stocks (COIN and HOOD)
Coinbase ($COIN) and Robinhood ($HOOD) benefit when ETH trading volume rises. Coinbase has the added edge of running BASE (an Ethereum Layer 2), custodian services for ETH ETFs, and holding ETH on its balance sheet. These stocks give indirect exposure while staying in traditional equity markets.
5. Treasury Companies
The highest risk – and potentially highest reward – option. Companies like BitMine ($BNMR) and SBET act as leveraged ETH plays by holding large amounts on their balance sheets. BitMine is the clear leader here, but volatility is extreme. Trade accordingly.
Eventually, ETH will cool off and rotate capital back into Bitcoin and alts. But after four years of being beaten down, I believe it can rally for at least another month or two – provided nothing breaks.
ETH investors, more than any other maxi group, truly deserve to see new all-time highs. Ethereum has been a cornerstone of crypto for years, overcoming unique challenges thanks to its foundational role and ambitious vision. I can’t name another asset that’s been such a fixture while also being counted out so many times – only to keep proving the critics wrong.
The rapid rise of ETH ETFs and treasury holdings gives the asset the fuel to push higher, even in the face of profit-taking. And staking approval for ETFs is still ahead.
Congrats to the holders – your gains are well deserved.
Bitcoin Thoughts And Analysis
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Legacy Markets
US stock futures were flat on Monday as traders awaited Tuesday’s key CPI report – a release that could influence expectations for Federal Reserve rate cuts. S&P 500 and Nasdaq 100 futures barely moved, European stocks gave back early gains, and bond yields and the dollar were steady.
Markets are currently pricing in more than two rate cuts by December, with about an 80% chance of a September cut. Economists expect July’s core CPI to rise 0.3% from the prior month – up from 0.2% in June. A hotter-than-expected reading could push back the first rate cut and hit sentiment, while a softer print might fuel bullish rotation – with Goldman Sachs traders suggesting cyclical calls or selective AI hedges.
The backdrop remains complicated by shifting US tariff policies and a 90-day US–China trade truce extension – something analysts warn could keep inflation pressures alive. Meanwhile, Nvidia shares wavered after China urged firms to avoid its H20 processors for government uses, potentially hurting revenue.
Corporate highlights: Elon Musk accused Apple of favoring OpenAI on its app store – Bayer struck a $1.3B cancer drug deal with Kumquat Biosciences – Hanesbrands jumped 26% on M&A speculation – and a major UBS shareholder sold its entire $621M stake.
ETH Inches Closer To 100% Of Addresses In Profit
There’s not a ton of alpha here – it’s pretty obvious that if ETH reaches an all-time high, then 100% of addresses will be in profit. This is more of a celebratory note and a reminder of how quickly sentiment can flip in crypto.
Back in April, only 40% of addresses were in profit. Fast-forward a few months, and we’re now within just a few percentage points of that magic 100% mark. Wild.
I suspect a lot of ETH holders dumped their bags leading into April, which is exactly why today’s setup still doesn’t feel like ‘peak ETH exposure’ – retail seems underweight.
The President’s Son Is Back To Bull Posting
A new name just hit the crypto block – and Eric Trump is already bullposting about it. How can you not love this space?
ALT5 Sigma, a Nasdaq-listed digital asset trading and custody platform, plans to raise roughly $1.5 billion through a mix of a registered direct offering and a concurrent private placement, both priced at $7.50 per share.
The private placement is led by World Liberty Financial ($WLFI), which is scooping up 100 million shares by paying in $WLFI tokens instead of cash – a move I suspect will keep paying off for them.
ALT5 says part of the funds will go toward acquiring more $WLFI tokens and launching its own cryptocurrency treasury operations. The rest will help settle litigation, pay down debt, and strengthen its core business.
David Bailey Is Smash Buying Bitcoin Today
He clarified that the $760 million figure was slightly rounded up - but that’s beside the point. More buys are on the way, and the total will easily surpass $1 billion before long. Pulling off a move like this is nothing short of legendary, especially when you consider that in five or ten years, $1 billion will purchase only a fraction of the Bitcoin it does today.
Do Kwon May Plead Guilty
A federal judge has scheduled a Tuesday hearing where Do Kwon – the infamous co-founder of Terraform Labs – may change his plea. Kwon originally pleaded not guilty to nine felony charges, including securities fraud, market manipulation, and money laundering, after being extradited from Montenegro to the US. The charges stem from the collapse of the Terra ecosystem, which wiped out $40 billion in investor funds.
Kwon was arrested in Montenegro for using fake travel documents and fought extradition for over a year before being transferred to US custody in December 2024. He has been held without bail since his January plea. Today’s hearing is a pivotal moment ahead of his trial, which was set to begin in January 2026.
Bitcoin Near Record Levels - Will The Crypto Rally Go Parabolic? | Macro Monday
Crypto is surging into CPI week – Bitcoin’s above $122K and Ether is up 21% to $4,300 on bullish macro sentiment, ETF inflows, and Trump’s 401(k) crypto push. BitMine Immersion now holds 1.15M ETH worth $5B, the largest corporate ETH treasury ever. On Macro Monday, Dave Weisberger, James Lavish, and Mike McGlone join me to discuss whether this rally can survive Tuesday’s inflation print.
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The views and opinions expressed here are solely my own and should in no way be interpreted as financial advice. Every investment and trading move involves risk. You should conduct your own research when making a decision. I am not a financial advisor. Nothing contained in this e-mail constitutes or shall be construed as an offering of financial instruments or as investment advice or recommendations of an investment strategy or whether or not to "Buy," "Sell," or "Hold" an investment.
Scott i’ve been a fan for a couple years of your Substack. But I’m super disappointed today that you’re trying to get people to sign up for a crypto exchange over on telegram. Just put the Btc chart here, please.