Tom Lee is buying the dip on Ethereum as its price keeps falling.

On Monday, BitMine Immersion, the Bitcoin miner turned treasury company, announced it had scooped up another $200 million worth of Ethereum, bringing its total Ethereum holdings back to over $10 billion.

That’s equivalent to 3% of the entire Ethereum token supply, and over half way towards the firm’s 5% goal.

“A few weeks ago, we noted the likely downside for ETH prices would be around $2,500 and current ETH prices are basically there,” BitMine chair Tom Lee, who in recent months has become one of Ethereum’s most vocal backers, said in a release announcing the firm’s latest purchase.

“This implies asymmetric risk/reward as the downside is 5% to 7%, while the upside is the supercycle ahead for Ethereum.”

Trend reversal

On October 10, the crypto market experienced its biggest ever leverage wipeout, sending crypto prices into freefall.

Ethereum has plummeted some 35% since then, while Bitcoin has fared slightly better, falling around 28%.

“The continued decline in crypto prices in the past week reflects the impaired liquidity since October 10th, as well as price technicals, which remain weak,” Lee said.

Still, the BitMine chair said he sees a reversal of the current bearish trend before 2026. In a November 3 interview on CNBC, he predicted Bitcoin could hit $200,000 and Ethereum $7,000 by the end of the year.

Lee isn’t the only one who thinks the depressed crypto prices are a good buying opportunity.

“Bitcoin could still trade lower in the short term until a clear bullish catalyst emerges,” André Dragosch, Bitwise’s European head of research, previously told DL News. “But these would be ‘firesale valuations’ and very attractive entry points to build exposure to Bitcoin.”

Investor caution

Not everyone is so optimistic, however.

“Bitcoin $50,000 or $150,000 in 2026? My bias is toward $50,000,” Mike McGlone, a senior commodity strategist at Bloomberg Intelligence, said in a Sunday post on LinkedIn, the social media site. “Particularly if the S&P 500 has a third down year since 2008.”

McGlone argues that the skyrocketing price of gold alongside falling oil prices and volatility in the stock market will turn investors away from riskier assets like cryptocurrencies.

Elsewhere, BitMEX co-founder Arthur Hayes forecasts an extended period of lower prices for the top crypto, which could extend into the new year.

Investors in BitMine’s stock are also cautious.

The firm’s Market to Net Asset Value, or mNAV, hovers at around 0.72, meaning that the value of its crypto holdings and cash is higher than its publicly traded market value.

Such discounts often signal market pessimism, underperformance, or a lack of investor confidence in the company’s strategy or management.

After BitMine’s latest purchase, its average price paid per Ethereum sits at $2,840, just under the asset’s current price of $2,813.

Tim Craig is DL News’ Edinburgh-based DeFi Correspondent. Reach out with tips at tim@dlnews.com.