The Wall Street Ethereum Bull: Tom Lee Explains Why ETH is Retracing Bitcoin's 2017 Breakout Playbook

When Tom Lee announced Bitmine’s creation in late June, the crypto world paid attention. Now, as the world’s largest publicly listed Ethereum treasury company with roughly 833,000 ETH (nearly 1% of total supply), Bitmine has become the focal point of a larger trend: institutional embrace of Ethereum as both an asset and infrastructure play. With Ethereum (ETH) currently trading at $2.93K, the comparison to Bitcoin’s pre-2017 surge feels increasingly relevant. Lee sat down to explain why he believes Ethereum is living through its “2017 moment”—and why that matters.

How a Ethereum Treasury Strategy Became Wall Street’s New Obsession

The speed was stunning. From announcement on June 30 to full operational launch by July 8, Bitmine accumulated 833,000 Ethereum in just 27 days—a pace that made even seasoned traders take notice. To put this in perspective, the company is accumulating roughly $0.80 to $1 in Ethereum daily, compared to MicroStrategy’s methodical $0.16 daily Bitcoin purchases. That’s a 12x faster accumulation rate.

“We acted quickly because this felt like a macro moment,” Lee explained. The parallel to MicroStrategy’s Bitcoin strategy is intentional. When MicroStrategy began its Bitcoin treasury initiative in 2020, the company’s stock was trading at just $13. Bitcoin subsequently climbed from roughly $11,000 to $120,000, while MicroStrategy’s shrewd asset positioning generated an additional 20x multiplier effect. Total returns: 30x. Lee believes Ethereum could deliver a similar—or even larger—opportunity over the next decade.

Bitmine’s ultimate goal is ambitious: accumulate 5% of Ethereum’s total supply, requiring roughly $20 billion in acquisition capital. At the current pace of accumulation, Lee suggests 1 to 2 years is achievable. But unlike Bitcoin’s slower, methodical institutional accumulation, Ethereum’s thesis carries an extra dimension: the promise of staking yields.

Staking, Compliance, and the Infrastructure Play

Here’s where Ethereum asset companies differ fundamentally from Bitcoin treasury plays. Ethereum’s proof-of-stake mechanism means that holding Ethereum isn’t passive—it generates yield. Bitmine’s $3 billion in Ethereum holdings can generate over 3% annually through native staking, translating to roughly $90 million in annual income. Using traditional GAAP net income accounting standards and a standard 20x price-to-earnings multiple, that staking income alone justifies a 6x valuation premium on net asset value.

This is why Goldman Sachs, JPMorgan, and other Wall Street institutions suddenly care about Ethereum. They’re not looking for decentralized chaos; they want compliant, revenue-generating blockchain infrastructure. “Ethereum will be the primary blockchain for Wall Street’s financialization,” Lee noted. “They don’t want Ethereum scattered across millions of wallets. They want professional stakers providing security and generating measurable returns.”

Bitmine has structured itself as exactly that: a clean balance sheet, zero complexity, full compliance with U.S. regulatory expectations. The company ranks 42nd by trading volume among all U.S.-listed stocks, with roughly $1.6 billion in daily trading volume—second only to traditional crypto asset companies but massively ahead of competitors like BTBT ($49 million daily) and others ($7 million or less).

Why the MNAV Premium Isn’t Hype—It’s Math

Wall Street observers often question the “market-to-net-asset-value” (MNAV) premium that Bitmine commands. If the company just holds Ethereum, shouldn’t it trade at 1x NAV, like an ETF?

Lee’s answer: it’s not that simple. Start with the math. The company’s staking yield alone justifies 6x earnings multiples. Layer in acquisition speed: in just 20 days from launch to late July, each share accumulated an additional $19 worth of Ethereum. That’s velocity premium. Add liquidity premium—Bitmine’s $1.6 billion daily trading volume dwarfs competitors by 100x or more. Finally, factor in the compliance and infrastructure edge: not all Ethereum is held equally in Wall Street’s eyes.

“When you acquire Bitmine, you’re not just buying Ethereum,” Lee explained. “You’re buying managed, compliant Ethereum infrastructure with yield generation and institutional-grade liquidity. That justifies a significant premium.”

MicroStrategy, for comparison, typically trades at a 0.7x premium despite its slower Bitcoin accumulation pace. Bitmine’s theoretical premium ceiling could reach 6x or higher, though practical market conditions tend to compress these valuations.

The “2017 Moment”: Why Ethereum Resembles Bitcoin Before the Boom

This is where Lee’s bull case becomes genuinely interesting. In 2017, Bitcoin was stuck at roughly $1,000, viewed by most institutions as a speculative casino asset tied to drug dealers and dark web activities. Fundstrat’s research discovered that 97% of Bitcoin’s prior price appreciation came from network growth—more users, more activity, more wallets—rather than speculation.

“We partnered with financial advisors and looked at millennial behavior patterns,” Lee recalled. “Bitcoin was digital gold for Gen Z investors, just like gold was for baby boomers. Nobody believed that thesis at the time, but the data showed explosive upside if adoption followed.”

Fast forward to 2025: Bitcoin has climbed from $1,000 to $87.50K, roughly a 87x return. Ethereum faces a similar credibility gap. The network was once dismissed as a “dead chain,” outcompeted by faster Layer 2 solutions or newer blockchains with different verification methods. But Ethereum has operated without downtime for a full decade—a track record Wall Street values heavily.

The tokenization wave is accelerating. Circle, Coinbase, and Robinhood are building Layer 2 infrastructure on Ethereum. On-chain activity has surged to all-time highs. The community is energized. Yet mainstream investors remain skeptical, viewing Ethereum as outdated compared to newer chains or overvalued at current prices.

“This is textbook pre-boom positioning,” Lee argued. “Bitcoin faced identical skepticism. Ethereum now looks like Bitcoin in 2016-2017—cheap relative to what’s coming, dismissed by many, but accumulating usage and legitimacy behind the scenes.”

The Price Target Question

Lee’s predictions are characteristically bold. He believes Ethereum should hit $4,000 in the near term—a modest 36% upside from current levels. One year out, factoring in improved Ethereum-to-Bitcoin ratio dynamics (currently stronger than a year ago), he pegs a $6,000 target as reasonable. By year-end, considering additional institutional buying and Bitcoin strength, $7,000 to $15,000 seems achievable.

By 2026, assuming Federal Reserve monetary easing and liquidity expansion, Ethereum could continue climbing meaningfully. “There’s no clear crypto cycle,” Lee acknowledged, “but if one emerges, it benefits Ethereum asset companies disproportionately.”

He’s comfortable with Ethereum remaining stable or even declining over the next five years before a major surge. Lower prices make accumulation cheaper. Once the entire financial system recognizes Ethereum’s role in tokenization and artificial intelligence infrastructure, the asymmetry will become obvious.

Why This Isn’t a Bubble (Yet)

Critics worry that Ethereum treasury companies could spawn a bubble reminiscent of the 1920s closed-end fund collapse. Lee dismisses the concern—but with an important caveat.

“Bubbles form when everyone is bullish,” he noted. “Right now, everyone is bearish. Last week showed massive selling pressure. If this were a genuine top, people would accept it calmly. Instead, conviction is weak. That’s exactly the opposite of a bubble signal.”

The real systemic risk would come from leverage. Ethereum treasury companies holding significant debt or complex financial instruments could amplify market stress during downturns. But Bitmine, MicroStrategy, and similar platforms maintain clean balance sheets precisely to avoid this trap.

“We’re far from dangerous territory,” Lee concluded. “Most concerns about crypto asset company bubbles collapse under scrutiny. Tops occur when skepticism vanishes entirely. Skepticism is alive and well today.”

The Larger Narrative

Fundamentally, Tom Lee’s thesis rests on a simple observation: Ethereum is transitioning from a speculative asset to critical financial infrastructure. Wall Street doesn’t move on hype; it moves on money. Circle’s strong IPO performance, Coinbase’s resilience, and Robinhood’s strength all signal renewed institutional appetite.

Ethereum treasury companies like Bitmine serve as macro trading vehicles for professional investors who want Ethereum exposure without direct cryptocurrency holdings. For hedge funds, family offices, and public company treasuries, buying Bitmine shares provides Wall Street-approved access to Ethereum’s upside—with professional management and regulatory comfort.

“That’s the real story,” Lee emphasized. “Not a bet on crypto. A bet on Ethereum becoming the backbone of tokenized finance and digital infrastructure. The vehicle is a treasury company. The thesis is fundamentally sound.”

Whether Ethereum reaches $4,000, $6,000, or $15,000 depends on adoption curves and macroeconomic conditions. But the positioning—accumulating Ethereum infrastructure before mainstream recognition arrives—mirrors Bitcoin’s pre-2017 setup precisely. For believers in Ethereum’s long-term role in global finance, that parallel carries genuine weight.