Tom Lee: A pullback is a buying opportunity! BitMine bought the dip of 120,000 ETH over the weekend.

After a bloody storm last Friday, Ethereum's major bull Tom Lee did not forget to express his confidence, stating that the pullback is a good time to buy! On-chain data also shows that BitMine has aggressively increased its holdings at the weekend's low, purchasing 128,718 Ether, bringing its total holdings to 4.11 million Ether. As for whether BitMine is indeed facing unrealized losses of 1.9 billion as reported? While I disagree with this statement, I also believe that BitMine's average cost and mNAV lack transparency, and it seems we will have to wait for BitMine's financial report to see the truth!

Tom Lee: A pullback is a good time to buy!

After a bloody storm last Friday, Tom Lee stated in an interview with CNBC that the rise in VIX is a good thing, indicating that the market is seeking safety and protection, which is usually a temporary signal of a bottom. Historical patterns suggest that after volatility reaches its peak, the market typically rises a week and a month later. Tom Lee also bluntly mentioned that this pullback is a good buying opportunity!

Note: The VIX index, full name CBOE Volatility Index, commonly referred to in Chinese as the "Fear Index," measures the market's expectation of the volatility of S&P 500 index options over the next 30 days.

BitMine buys 120,000 coins of ETH on dips

@coinbureau also analyzed on-chain wallets, BitMine heavily increased its position over the weekend by purchasing 128,718 Ether, bringing its total holdings to 4.11 million Ether.

BitMine's unrealized losses reach up to 1.9 billion?

According to the blockchain analysis platform Onchain Lens, BitMine holds up to 2.83 million Ether, with an average purchase price of $4,535 per coin. As Ether fell to $3,839 over the weekend, BitMine's position losses have reached $1.93 billion (unrealized).

(ETH big disaster! Bitmine explodes with 1.9 billion dollars in unrealized losses, can Tom Lee's whale strategy survive the winter? )

BitMine average cost and mNAV lack transparency.

However, the author questions the accuracy of this average cost of 4,535 USD, as BitMine announces its held assets weekly in the format shown in the figure below, where the price of ETH at 4,535 USD is annotated with Bloomberg, indicating that it is the ETH price from Bloomberg information at the time of announcement, rather than the buying cost.

In fact, investors cannot know their purchase cost price. Currently, on-chain data can only be derived from the amount of ETH held in their wallet and the price at the time it entered the wallet. BitMine does not announce related indicators like mNAV as other reserve companies do. Although some question that mNAV may mislead investors, the author believes that if most digital asset financial companies (DAT) do not have other profitable core businesses, mNAV is actually the only quantifiable assessment indicator.

( Bitcoin vault consolidation trend? Strive's acquisition of Semler is suspected of misleading investors with mNAV )

As for whether BitMine is really facing unrealized losses of 1.9 billion, I do not agree with this statement. After all, BitMine's initial purchase was around 3,000 dollars starting from July, but it seems that we can only wait for BitMine's financial report to reveal the truth!

This article Tom Lee: The pullback is a buying opportunity! BitMine bought 120,000 ETH over the weekend, first appearing in on-chain news ABMedia.