Tom Lee, chairman of Bitmine Immersion Technologies, said that recent concerns about institutional selling and capital outflows are more like a common market reaction when Bitcoin is bottoming out, rather than a signal of deeper problems.
Strategy sold a very small amount.
In an interview with CoinDesk, Lee stated that Strategy Executive Chairman Michael Saylor had previously indicated he would sell some of his Bitcoin, so the transaction itself was not unexpected. According to him, Saylor still holds the vast majority of his position, and his interests remain tied to Bitcoin's price performance.
Strategy previously sold 32 BTC at an average price of approximately $77,135, raising about $2.5 million, which was used to pay preferred stock dividends. This was the company's first Bitcoin sale in nearly four years, sparking speculation about a possible change in its cryptocurrency holding strategy.
However, considering the overall holdings, this transaction represents a very small percentage. The report mentions that Strategy currently holds over 843,700 BTC, and this sale represents only about 0.004% of its total reserves. Several Wall Street analysts also believe that this transaction will have limited impact on its long-term accumulation strategy.
Continuous outflows from ETFs exacerbate concerns
Lee made these remarks just as the U.S. spot Bitcoin ETF had just experienced its longest period of continuous outflows since its listing in January 2024.
- Net outflow for 11 consecutive trading days
- The cumulative outflow is approximately $3.4 billion.
- This marks the longest leakage record since the product's launch.
Lee believes that this type of capital withdrawal is usually a lagging manifestation of market cycle adjustments, often occurring when prices are near a stage low. While it may increase price pressure in the short term and amplify panic, it does not necessarily mean that the market structure has deteriorated.
Bitmine says its overall strategy remains unchanged.
In addition to discussing Bitcoin, Lee also stated that Bitmine's broader asset allocation strategy remains unchanged, which includes continuing to increase its Ethereum holdings.
Reports indicate that Bitmine accelerated its ETH buying pace last week, completing its largest purchase since December of last year. The company bought 111,942 ETH, worth approximately $237 million at current prices.
Following this purchase, Bitmine's ETH holdings rose to nearly 5.4 million, representing approximately 4.47% of the circulating Ethereum supply. Lee stated that the company's planned accumulation program is still underway.
