BitMine Chairman Tom Lee believes Ethereum could outperform Bitcoin during the current market cycle, pointing to growing demand from tokenization projects and blockchain-based AI applications.
According to a recent Fundstrat analysis, BitMine Immersion Technologies (BMNR) was the U.S.-listed stock most closely tied to Ethereum’s price movements. The study found an 80% correlation between BMNR and ETH, making it the strongest Ethereum-linked stock among the large-cap companies examined.
Coinbase ranked second with a 74% correlation to Ethereum. On the Bitcoin side, Strategy recorded the highest correlation at 78%, followed by Coinbase at 74%.
Lee said Ethereum’s next phase of growth may be driven by factors different from previous crypto cycles. While earlier rallies were fueled by trends such as initial coin offerings, NFTs, and stablecoins, he believes tokenization and AI-related blockchain activity could become the major drivers of future demand.
BitMine’s close connection to Ethereum comes from its aggressive ETH accumulation strategy. As of Aug. 16, the company held more than 5.8 million ETH, along with 210 Bitcoin, cash reserves, and other investments.
The company said its Ethereum holdings represent roughly 4.8% of ETH’s total supply, bringing it close to its stated goal of owning 5% of all Ether in circulation.
BitMine has continued buying ETH every week since launching its Ethereum treasury strategy in June 2025. During the most recent reporting period, the company added nearly 10,000 more ETH to its balance sheet.
The firm’s strategy goes beyond simply holding Ethereum. More than 5 million ETH, or around 87% of its total holdings, has been staked. By staking its assets, BitMine earns rewards and generates revenue directly from the Ethereum network.
Based on current staking yields, the company estimates annual staking revenue could reach hundreds of millions of dollars. This gives BitMine a potential income stream that companies holding Bitcoin cannot access because Bitcoin does not operate on a proof-of-stake system.
BitMine has also expanded its presence in traditional financial markets. The company joined the Russell 1000 Index earlier this year, giving institutional investors another way to gain indirect exposure to Ethereum through the stock market.
Lee’s bullish view on Ethereum is also supported by growth in the tokenization sector. Ethereum remains the leading blockchain for tokenized real-world assets, stablecoins, and financial applications.
Data from the real-world asset sector shows billions of dollars in tokenized assets and transfer activity taking place on Ethereum. Major financial institutions, including BlackRock, JPMorgan, and other asset managers, have also explored tokenized funds and settlement systems built on Ethereum-related infrastructure.
Institutional demand has also become visible through exchange-traded funds. In July, U.S. spot Ethereum ETFs attracted $365 million in net inflows, outperforming Bitcoin ETFs, which received $205 million during the same period.
The strong ETF demand was seen as a sign that investors were increasing their exposure to Ethereum through regulated investment products.
Lee also highlighted the potential impact of AI-powered blockchain applications. He believes future AI agents could use Ethereum-based wallets, smart contracts, and stablecoins to interact with digital services and financial networks.
While he remains optimistic, analysts note that Ethereum’s performance will still depend on market conditions, competition from other blockchains, adoption rates, and overall investor demand.
For now, BitMine’s growing Ethereum treasury and strong stock correlation with ETH have made BMNR one of the most closely watched public companies among investors seeking indirect exposure to Ethereum’s long-term growth potential.
