BitMine chairman Tom Lee identified BMNR, the US listed stock that is most closely linked to Ethereum. Citing an 80% correlative while predicting ETH would outperform Bitcoin in the current cycle.
The following is a summary of the information that you will find on this page.
- Fundstrat’s study of 17 large-cap companies showed that BitMine had a 80% relationship with ETH.
- Lee anticipates that the tokenization of Ethereum and AI applications will support its performance against Bitcoin.
- BitMine owned 5.82 million ETH (or 4.8% of the token supply) as of Aug. 16
- US Ethereum ETFs had a July revenue of $365m, as opposed to $205m for Bitcoin funds.
Fundstrat stated in a post published on X Friday that it had studied 17 publicly-traded companies that were valued at more than $2 billion. This gave stock investors a comprehensive list of businesses that are closely linked to Bitcoin and Ethereum.
BitMine Immersion Technologies was the leader in Ethereum with a correlation rate of 80%. Coinbase came second, at 74%. Strategy had the highest correlation with Bitcoin at 78%. Coinbase was second at 74%.
Lee stated that he believes Ethereum will beat Bitcoin in the current cycle, because of tokenization and AI-based applications. He believes that the use cases for ETH are now more relevant than ever before.
Fundstrat did not specify the time period for calculating the correlations, nor explain whether Fundstrat was measuring daily, weekly or monthly returns. As prices and conditions fluctuate, correlations can also shift. This means that the numbers represent the Fundstrat dataset and not the fixed relationship between a stock and its corresponding cryptocurrency.
BitMine Stock gives investors an indirect way to Ethereum
BitMine’s top ranking is due to its decision of building the world’s biggest corporate Ethereum treasury. The company had 5,815,164 Ethereum, 210 bitcoins, $78,000,000 in cash, marketable securities and investment in Beast Industries, Eightco Holdings as of August 16.
Using ETH at $1,893, BitMine estimated its total crypto, cash and securities investments to be $11.4 billion. The company stated that it owned 4.8% (or 120.7 millions tokens) of Ethereum’s supply. That puts them 96% toward their target to own 5%.
BitMine purchased another 9,926 ETH. According to its most recent update, the company bought Ether once a week ever since it adopted its Ethereum Treasury strategy on 30 June 2025.
A Aug. 10, treasury update Crypto.news reported that BitMine held approximately 5,81 million ETH following another purchase of 7,391 tokens. The company also repurchased 3 million BMNR stock under a $4 Billion authorization.
BitMine purchased another 1.7million shares in the next week. This brings the total number of BitMine’s repurchases since July to 20.8million. Lee stated that the management believed the common shares were undervalued. However, this assessment is the opinion of the company and not an independent appraisal.
BMNR finished the Aug. 21 session at approximately $22.72, gaining 5.3%. Coinbase gained around 7.5% while Strategy gained about 5.9% as Bitcoin and other large altcoins rose during the same period of trading.
BitMine has made Ethereum stake central to its business model
As of August 16, BitMine had staked 5,067 309 tokens out of its 5.82 million Ethereum. This amount represents approximately 87% of BitMine’s Ethereum assets and is valued at $9.6 Billion using the prices cited in the announcement.
BitMine’s projected annual stake revenue is around $250,000,000 based on a yield of 2.61% for a period of seven days. According to the company, potential annual rewards can reach up to $287 million if its remaining ETH are staked via its MAVAN and external partners.
Staking allows BitMine to earn revenue from Bitcoin that Strategy can’t generate, because Bitcoin is not a proof of stake system. BitMine’s estimates depend, however, on Ethereum’s staking rate, ETH’s current market value, validator performances and the amount company-owned Ether invested in staking.
This company is also joined the Russell 1000 The US large-cap index was launched on 26 June, providing US fund managers with another indirect way of obtaining Ethereum exposure. BMNR is traded on the New York Stock Exchange while the 9.5% Series A perpetual prefer stock, BMNP, trades there.
BMNR, compared to a spot Ethereum ETF carries risks related to its operations costs, capital decision, share issuances, staking activities, and other investment. The market price of BMNR can fluctuate above and below the value held by ETH on the balance sheet.
The Tokenization of Ethereum supports Lee’s Ethereum theory
Lee described tokenization is one of the primary reasons Ethereum can gain over Bitcoin. BitMine reported that in its August 17th update the ETH/BTC rate had increased to 0.02994, breaking a trend of long-term decline.
Before ETH/BTC analysis The ratio was seen testing resistance at 0.0286 near the end of July, after it had recovered from a low in early June around 0.026. A rising ratio indicates that ETH has gained value against BTC.
Lee says that Ethereum’s gains relative to other currencies during the earlier cycles have been supported by NFTs, in 2020 and 2121, as well stablecoin adoption. He believes that Wall Street tokenization, and AI-based blockchain agents will support the next phase of ETH’s outperformance.
RWA.xyz data Tokenization arguments are now framed in a wider context. On Aug. 21 the analytics platform had tracked 227 real-world asset on Ethereum, and over a 30-day period $13,.99 billion of RWA transfers. That’s a growth of 20,45%.
The database also placed Ethereum’s stablecoin value at $157.11 billion. This is based on 26.6 millions holders, and the volume of transfers in 30 day period was 1,55 trillion. Ondo Securitize Circle Tether Sky and Tether are among the tokenized asset platforms that were listed in this network.
Wall Street’s involvement extends beyond the companies that hold ETH. BlackRock JPMorgan are among the asset managers who have created or tested tokenized products, collateral and settlement services using Ethereum software or compatible networks.
US Ethereum ETFs showing signs of institutional demand
Exchange-traded products listed on US exchanges are another indicator of investor demand. They prefer to use regulated brokerage services. Net inflows to spot Ethereum exchange-traded funds were $365m in July. Spot Bitcoin ETFs also received $205m.
A recent report revealed that the results for July were amongst the strongest ever recorded by Ethereum funds. It was also first time monthly Bitcoin ETF flows exceeded Ethereum fund inflows twice as much. ETF flow review. Ethereum funds received $68.99 millions, while Ethereum-based products were awarded $72,64 million on July 23.
Ethereum ETFs increased their holdings by $53.75 millions on August 4, and then $202 over the following three trading days. During the month of July, the ETH/BTC rate rose about 11% from 0.027 up to 0.030.
The second half of Lee’s prediction is AI applications. Ethereum.org claims blockchain-based agents are able to control wallets and execute transactions. They can also interact with smart contracts, and pay using stablecoins for accessing computing resources and data.
Ethereum.org describes its technology as “experimental” and cautions users. The presence of agents does not ensure demand for ETH, as applications may use layer-2 networks or other payment systems.
Lee has cited Robinhood Chain for a combination of blockchain and financial services. Robinhood’s 27.4million funded users at the end first quarter were able to use the Ethereum layer-2 for its transaction fee and sent their final transaction records back to Ethereum.
Within weeks of its July launch, the network had recorded almost $9 billion in cumulative decentralized-exchange volume, $431 million in locked assets and more than 250,000 daily active users, according to Robinhood Chain data. The network was able to reduce trading costs by temporarily waiving fees during its first 90 days.
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Source: crypto.news
