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Feb 06
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LONG
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Tom Lee
Fundstrat / Chairman of Bitmain (per transcript)
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The stock is at a 7-month low, tracking the drop in Ethereum prices, leading to fears of financial distress. Lee argues the sell-off is purely correlated to the asset price (ETH), not company insolvency. The company is a debt-free vehicle designed to track Ethereum with yield. Because it has no leverage, there is "no risk" of a liquidation event or bankruptcy; it simply waits for the ETH price to recover. The company holds 4.3 million Ethereum (earning 3% APY) and $600 million in cash (earning 4% APY). It generates ~$1 million per day ($360 million/year) in net income. Continued depression in Ethereum prices, which the stock tracks. |
CNBC
Fundstrat's Tom Lee: Crypto looks like it is ...
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