BitMine Chairman Tom Lee stated that Ethereum is not facing a so-called "funding crisis," and that the funding needed for future network upgrades has been secured. Discussions surrounding this issue have recently intensified due to concerns that reduced spending and increased staff turnover within the Ethereum Foundation could hinder the progress of core protocol updates.
It costs approximately $30 million annually.
Market analyst Van Epps noted that the smooth operation of the Ethereum network and updates to its core protocols require approximately $30 million annually, a task primarily undertaken by the Ethereum Foundation. He believes that current resources are insufficient to address the increasingly complex development tasks of Ethereum.
Meanwhile, Ethereum founder Vitalik Buterin has recently been pushing for more organizations to share the responsibility of network maintenance. He previously stated that the Ethereum Foundation was not established for "permanently managing the network." This shift in direction has also drawn more attention to who will continue to support core development in the future.
The foundation's restructuring has drawn attention.
The recent departure of several senior executives and core protocol contributors from the foundation has further amplified concerns about governance continuity. Some have also suggested that a poorly handled transition could even impact longer-term technological readiness, including upgrades for the post-quantum era.
However, Tom Lee did not specify the exact sources of the "secured funding," nor did he clarify whether BitMine would assume a larger role outside the foundation. BitMine is currently one of the world's largest treasury companies holding ETH, making its statement particularly noteworthy.
BitMine holds 5.62 million ETH.
According to reports, BitMine disclosed last week that it holds 5.62 million ETH, representing approximately 4.6% of the current total supply of 120.7 million ETH. Of this, approximately 4.7 million ETH have been staked. The company has also issued preferred stock to raise more funds to continue buying ETH.
Tom Lee's long-term outlook on Ethereum is primarily based on two factors: the tokenization of real-world assets and the on-chain demand driven by the growth of AI agents. He believes that even as enterprise blockchains supported by companies like Stripe emerge, competition for control will continue among different companies, and Ethereum is likely to retain its neutral network status.
ETF demand has not yet strengthened.
However, the funding situation has not improved significantly. The report mentioned that institutional demand through US spot ETFs has remained weak since late May, which has kept ETH under pressure in the latter part of the second quarter, with the price remaining below $2,000.
The market will continue to focus on two variables: whether ETF funds will flow back in, and whether the core development and upgrades can remain stable after the Ethereum Foundation's role is adjusted.
