Multi-trillion-dollar growth

Lee explained that this multi-trillion-dollar growth will be driven by artificial intelligence. As advanced software and automated computing take over the internet, machines will need a way to pay each other instantly without relying on slow, traditional bank wires.

“Robots are already going to dominate most traffic on the internet,” Lee stated. “And this is why Andreessen Horowitz and others have talked about this as being the great unification because if you’ve got robot systems, you’re going to have to control them. And that’s where blockchain is much more effective than traditional rails for controlling what robots do. Whether it’s authentication or identity or payment speed, all of these work better on crypto systems.”

Because of this machine-to-machine economy, Lee believes Ethereum will transform from a speculative digital asset into the primary global currency for paying for automated computer processing power.

Ethereum Foundation death

This systemic growth is completely changing how the underlying blockchain networks are managed. Lee pointed out that the non-profit Ethereum Foundation has spent years shrinking its own footprint, dropping its network holdings down to just 100,000 ETH—accounting for a tiny 0.1% of the total supply.

In its place, massive public companies are stepping in to run the network as corporate validators. Corporate entities like Bitmine and Sharklink now collectively control 7% of the entire circulating Ethereum supply. Instead of relying on foundation grants, these corporate treasuries now generate $500 million in staking rewards each year to fund the ecosystem themselves.

To demonstrate the value of this model, Lee announced a major regulatory milestone for Bitmine, which trades on the New York Stock Exchange under the ticker BMNR.

“Bitmine also meets the eligibility criteria to be added to the Russell 1000,” Lee revealed. “The inclusion date is June 26. Why does that matter? Well, the Russell 1000 is the most widely tracked index in the world… Every fund manager in the world who is benchmarked against the Russell 1000—and that’s over $4 trillion worth—will have to decide if they want to own Bitmine.”

Lee explained, with graphics behind him, that holding an active corporate validator stock significantly outperforms buying spot crypto. Over a baseline six-month stretch, holding regular spot ETH generated a modest 22% return, while Bitmine’s staking architecture returned 500% to its investors.

For Lee, the massive structural growth of corporate staking and AI utility completely overrides any temporary market panic. “If you are bearish today, you are selling at the bottom,” Lee concluded. “And again, I can’t emphasize thinking, if you’re bearish today, you are bearish at the bottom for Bitcoin and Ethereum.”

More For You

Ship on turbulent waters. (Pixabay)

The firm still views bitcoin as undervalued relative to equities, but says investors are rotating into AI stocks as the opportunity cost of missing gains by holding BTC is too high.

What to know:

  • Bitcoin faces difficult summer months as investors favor AI-related stocks and upcoming tech IPOs over crypto, K33 Research said.
  • The capital rotation is apparent in bitcoin ETFs seeing their second-largest three-week outflow streak on record.
  • The firm previously called $60,000 the cycle low but now warns that rising leverage and…

About the Author

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Stories