Fundstrat’s Tom Lee believes the latest wave of bearish signals across crypto markets points to a bottom rather than the start of a deeper downturn.
His comments came as Michael Saylor’s Strategy sold Bitcoin for only the second time in its history, spot Bitcoin ETFs recorded their longest outflow streak since launch, and the two largest crypto treasury firms sat on a combined $16.5 billion in unrealized losses.
Bitmine is down approximately $8.9 billion on its 5,416,901 ETH holdings, currently valued at $10.03 billion. Strategy is down roughly $7.6 billion on its 843,706 BTC holdings, valued at $56.26 billion.
Strategy sold 32 BTC between May 26 and May 31 for about $2.5 million at an average price of $77,135 per Bitcoin. The transaction marked the company’s first Bitcoin sale since December 2022 and ended a buying streak that had become central to its treasury strategy.
The company has recently turned away from its strict “never sell” stance. Management said Bitcoin sales may be used to improve Bitcoin-per-share metrics, support dividend payments, or strengthen the balance sheet.
The sale came during a period of broader market weakness. Bitcoin fell to its lowest level since April 13, while Strategy shares dropped nearly 6% following the disclosure.
Lee dismissed concerns that Strategy’s sale represents a change in conviction. He noted that Saylor had previously disclosed plans to sell Bitcoin and that the transaction represented only 32 BTC out of more than 843,700 BTC held by the company.
The sale amounted to roughly 0.004% of Strategy’s total Bitcoin reserves. Lee said recent ETF outflows and growing bearish sentiment resemble conditions typically seen near market lows.
US spot Bitcoin ETFs have now recorded 12 consecutive trading days of net outflows, the longest streak since the products launched in January 2024. Total withdrawals reached over $3.4 billion during the period.
Investors are focusing on liquidation headlines while overlooking the scale of remaining institutional holdings.
“If you’re bearish today, you are bearish at the bottom for Bitcoin and Ethereum,” Lee said during a conference appearance in Paris.
While several treasury firms have slowed purchases, reduced exposure, or exited crypto treasury strategies entirely, Bitmine continues adding Ethereum.
Last week, the company purchased 111,942 ETH worth roughly $237 million. It later added another 26,497 ETH valued at approximately $52 million.
Bitmine now holds 5,416,901 ETH, equal to about 4.48% of Ethereum’s circulating supply. The company also holds approximately $446 million in cash and 203 BTC worth about $14.5 million.
Lee said Bitmine’s Ethereum accumulation strategy remains on track, although purchases may slow as the company approaches its goal of holding 5% of the total ETH supply. The firm’s position makes it the largest corporate holder of Ethereum.
(adsbygoogle = window.adsbygoogle || []).push({});The crypto treasury model expanded rapidly during the bull market as companies raised capital through stock and debt offerings to accumulate digital assets.
Since crypto prices peaked in October, many treasury stocks have fallen below net asset value, limiting their ability to raise new capital.
Some firms have responded by selling assets. Nakamoto Holdings reduced its Bitcoin position by 284 BTC. Empery Digital sold 370 BTC to repay debt. Genius Group liquidated its remaining 84 BTC holdings. Some other firms have abandoned treasury strategies altogether.
Related: Bitmine Announces Largest ETH Buy as Tom Lee Predicts Supercycle
