Perma Bull and Wall Street Strategist Tom Lee Is Betting $250 Million On This Cryptocurrency (Hint: Not Bitcoin)
For those unaware, Strategy, formerly a business intelligence company founded by Michael Saylor, who remains the company's executive chairman, began using corporate capital to buy Bitcoin in 2020. The stock has rocketed since then, and eventually, Saylor and Strategy gained enough credibility to tap the capital markets for funding that it could then use to buy Bitcoin. This essentially made Strategy a leveraged play on Bitcoin.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Recently, Bitmine Immersion Companies (NYSEMKT: BMNR), a Bitcoin mining company, just named the prolific Wall Street strategist Tom Lee of Fundstrat as its chairman. The company also announced a $250 million private placement, which it will use to purchase Ethereum (CRYPTO: ETH), the world's second-largest cryptocurrency by market value.
Is it Ethereum's time?
Since Donald Trump won the presidential election last November, several of the largest cryptocurrencies, including Bitcoin and XRP, have done quite well. Ethereum, not so much.
Bitcoin Price data by YCharts
It's hard to pinpoint exactly why Ethereum has not shared in the gains, but perhaps a better explanation is that Bitcoin and XRP have simply enjoyed more catalysts. Bitcoin has benefited from being viewed as a form of digital gold, while XRP has surged as the Securities and Exchange Commission (SEC) ended its long-standing lawsuit against Ripple, the company behind XRP, and due to the possible launch of spot-XRP exchange-traded funds (ETFs).
The underperformance has opened the door for investors who feel like Ethereum is being unjustly left behind, Lee being one of them. Not only has Lee become a well-known contributor on CNBC, but he's made some prescient calls in recent years on the price of the broader market, as well as Bitcoin. Lee is typically bullish and nailed bull market calls in 2023 and 2024. Lee has previously said he thinks the broader benchmark S&P 500 could hit 15,000 by 2030 (the index now trades at about 6,200). He's also quite bullish on Ethereum as the crypto and financial sectors become more integrated, as he recently said on CNBC:
The financial services industry and crypto are converging and it really started with stablecoins, which is the ChatGPT of crypto because it's viral adoption by consumers, business banks and now even Visa. Underneath the stablecoin industry is Ethereum -- that is really the backbone and architecture of stablecoins so it's important to create a project that accumulates Ethereum to essentially protect and have some influence on the network.
As a reminder, stablecoins are digital assets pegged to a currency or commodity. They are intended to take advantage of the technology behind the blockchain while leaving behind the volatility associated with cryptocurrencies. Many believe they could be extremely helpful for those without access to the banking system because you can use them to transfer money anywhere with internet access.
Lee thinks banks could use Ethereum's proof-of-stake (PoS) consensus mechanism to secure stablecoin issuances in the future. PoS involves selecting validators based on the number of Ether tokens users have to confirm transactions and mint new blocks.
In a way, Ethereum is already a core part of the plumbing of the burgeoning stablecoin network. That's because it's one of the most commonly used blockchain networks in the U.S. Circle's USDC, the second-largest stablecoin, with a market cap of about $61 billion, is an ERC-20 token, meaning it was initially created on Ethereum's blockchain. Lee also noted that more than 30% of fees generated on Ethereum are from stablecoins.
Is Ethereum about to go on a Bitcoin-like run?
Part of Lee and Bitmine's bet on Ethereum has to do with the stablecoin market. U.S. Treasury Secretary Scott Bessent has already said he thinks stablecoins could go from a $250 billion market today to $2 trillion. If that happens, Lee thinks Ethereum's network is likely to benefit immensely because of all the network fees, which will perhaps make Ethereum more ubiquitous.
Interestingly, since the news of Tom Lee joining as chairman and the $250 million private placement, Bitmine's stock has soared more than 1,300% (as of July 1), although Ethereum's price hasn't moved much. Remember, cryptocurrencies are difficult to value because they don't generate earnings like a company.
I've been surprised that Ethereum's price has stayed so muted while Bitcoin has soared. As a cryptocurrency, Ethereum certainly has one of the best use cases due to all of the activity on its network from decentralized applications and its proof-of-staking concept, so I think it could be due for a run at some point.
Should you invest $1,000 in Ethereum right now?
Before you buy stock in Ethereum, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Ethereum wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $697,627!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $939,655!*
Now, it's worth noting Stock Advisor 's total average return is1,045% — a market-crushing outperformance compared to178%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of June 30, 2025
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Globe and Mail
9 minutes ago
- Globe and Mail
Stock Market News for Jul 7, 2025
Wall Street closed higher on Thursday, driven by tech stocks to round off a holiday-shortened week. Semiconductor giant Nvidia grew closer to the $4 trillion valuation mark, while a strong jobs report boosted investor morale. All three benchmark indexes closed firmly in the green. How Did the Benchmarks Perform? The Dow Jones Industrial Average (DJI) gained 0.8%, or 344.1 points, to close at 44,828.53. Twenty-two components of the 30-stock index ended in positive territory, seven ended in negative while one remained unchanged. The tech-heavy Nasdaq Composite added 208 points, or 1%, to close at 20,601.1. The S&P 500 rose 51.94 points, or 0.8%, to close at 6,279.36. Nine of the 11 broad sectors of the benchmark index closed in the green. The Technology Select Sector SPDR (XLK), the Financials Select Sector SPDR (XLF) and the Industrials Select Sector SPDR (XLI) advanced 1.3%, 1.1% and 0.9%, respectively. The fear-gauge CBOE Volatility Index (VIX) increased 5.1% to 17.48. A total of 10.9 billion shares were traded on Thursday, lower than the last 20-session average of 17.8 billion, with markets closing earlier than usual for the Independence Day weekend. NVIDIA Drives Markets as Tech Stocks Rally On Thursday, July 3, NVIDIA Corporation's NVDA valuation surge fundamentally shaped broader market sentiment. Shares climbed roughly 1.3%, pushing the company's market capitalization to nearly $3.9 trillion, briefly eclipsing Apple's record and positioning Nvidia as the potential first-ever $4 trillion company. This milestone underscored intense investor appetite for AI, reinforcing enthusiasm across the tech-focused Nasdaq and S&P 500, both of which closed at record highs. Nvidia's valuation bolstered confidence that AI infrastructure remains a durable growth theme. Moreover, optimism that the United States might ease export restrictions on semiconductor sales to China provided an additional tailwind. Consequently, shares of Intel Corporation INTC and Broadcom Inc. AVGO rose 2.8% and 2%, respectively. Both currently carry a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Economic Data Per the Bureau of Labor Statistics, total nonfarm payroll employment increased by 147,000 in June. The number for May was revised up to 144,000 from the previously reported 139,000. The unemployment rate decreased to 4.1% in June from 4.2% in May. Average Hourly Earnings increased 0.2% in June after rising 0.4% in May. The average Workweek decreased to 34.3 in June from the 34.2 reported in May. The U.S. Census Bureau reported that Factory Orders for May had increased 8.2%. The number for April was revised down to a decrease of 3.9% from the previously reported decline of 3.7%. Per the Institute for Supply Management, the ISM Services Index for June came in at 50.8. The number for May remained unrevised at 49.9. For the week ending June 28, initial claims came in at 233,000, a decrease of 4,000 from the previous week's revised level. Last week's level was revised up by 1,000 from 236,000 to 237,000. The 4-week moving average was 241,500, a decrease of 3,750 from the previous week's revised average. The prior week's average was revised up by 250 from 245,000 to 245,250. Continuing claims during the week ending June 21 were 1,964,000, unchanged from the previous week's revised level. The prior week's level was revised down by 10,000 from 1,974,000 to 1,964,000. The 4-week moving average was 1,954,000, an increase of 15,500 from the previous week's revised average. This is the highest level for this average since November 20, 2021, when it was 2,004,250. The previous week's average was revised down by 2,500 from 1,941,000 to 1,938,500. Weekly Roundup Last Thursday, the three most widely followed benchmark indexes closed a third straight winning week. The Dow Jones Industrial Average, the S&P 500 and the Nasdaq Composite gained 2.3%, 1.7% and 1.6% respectively. Only $1 to See All Zacks' Buys and Sells We're not kidding. Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone. See Stocks Now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Intel Corporation (INTC): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report Broadcom Inc. (AVGO): Free Stock Analysis Report
Globe and Mail
14 minutes ago
- Globe and Mail
SoundHound's Vertical AI Penetration Scales Up: Can It Drive Returns?
SoundHound AI, Inc. SOUN is accelerating enterprise adoption of its AI platform, supported by a surge in usage metrics and broader deployment across verticals. In the first quarter of 2025, enterprise KPIs surged, underscoring the platform's scalability and operational relevance across multiple verticals. Ticket volumes grew 5x quarter over quarter, average resolution time dropped by nearly 50x, and automation rates improved approximately 50% in the same quarter. The company's voice AI engine processed over 2 billion queries in the first quarter. Meanwhile, active restaurant deployments exceeded 13,000 locations, with SoundHound handling approximately 10 million customer interactions each quarter in that segment. Much of this enterprise momentum is anchored in Amelia 7.0, SoundHound's recently launched agentic AI platform built on its proprietary Agentic Plus framework. Designed to autonomously perform multi-step business workflows, Amelia integrates seamlessly with existing enterprise systems and offers optional human escalation. Early adoption across verticals — including telecom, financial services, healthcare and hospitality — has translated into expanded deployments and contract renewals. The company also expanded relationships with major clients like a British multinational telecom firm, several global insurers and one of the world's largest hospitality chains. In the first quarter, three healthcare firms renewed and expanded contracts, while four financial institutions grew their deployments of SoundHound's employee-facing AI solutions. With diversified vertical exposure, fast deployment timelines and a growing base of multimodal AI use cases, SoundHound is starting to reposition itself as a scalable enterprise AI infrastructure provider. How It Stacks Up to Competitors Inc. AI is pursuing a partner-led strategy to scale enterprise AI. In the fourth quarter of fiscal 2025, the company reported a 419% year-over-year surge in partner-supported bookings and signed 193 deals through its ecosystem. applications are embedded in Microsoft Azure's sales catalog, enabling Microsoft's global salesforce to co-sell across industries such as manufacturing, chemicals and defense. is targeting over 600 enterprise accounts with Microsoft. The company believes partner leverage will be the key to driving long-term scalability and recurring revenues. Holdings, Inc. BBAI continues to focus on AI deployments across national security, supply chain and critical infrastructure. is emphasizing mission-driven engagements, including deployments at the Department of Defense, Los Angeles International Airport and major U.S. shipbuilders. While its backlog reached $385 million, execution is still constrained by government procurement cycles and slower revenue conversion. BigBear's strategy leans heavily on internal R&D, federal contracts and select international pilots, rather than broad commercial scaling. SOUN's Price Performance, Valuation & Estimates Shares of SoundHound have gained 54.5% in the past three months compared with the industry 's growth of 23%. From a valuation standpoint, SOUN trades at a forward price-to-sales ratio of 23.76X, significantly below the industry's average of 19.75X. The Zacks Consensus Estimate for SoundHound's 2025 and 2026 earnings per share (EPS) implies a year-over-year uptick of 84.6% and 64.1%, respectively. The EPS estimates for 2025 have remained unchanged in the past 30 days. SoundHound stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Only $1 to See All Zacks' Buys and Sells We're not kidding. Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone. See Stocks Now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Inc. (AI): Free Stock Analysis Report Holdings, Inc. (BBAI): Free Stock Analysis Report SoundHound AI, Inc. (SOUN): Free Stock Analysis Report
Globe and Mail
14 minutes ago
- Globe and Mail
The Business & Peace Gala to Illuminate New York in 2026
A Global Convergence of Visionary Leadership, Strategic Dialogue, and Future-Defining Collaboration New York, New York--(Newsfile Corp. - July 7, 2025) - In January 2026, the city of New York will host the highly anticipated Business & Peace Gala, co-hosted by the Global Business & Peace Organization and the Association for the Protection of Asian Women in America. Business & Peace Gala To view an enhanced version of this graphic, please visit: As one of the most distinguished gatherings in the global business and cultural calendar, the Gala will convene a rare assembly of visionary leaders, pioneering entrepreneurs, innovators, and influential voices from various sectors. This extraordinary gathering brings together individuals whose achievements embody excellence and a deep commitment to shaping a more compassionate and purpose-driven world. The Gala is not merely a celebration, but a platform where generosity drives meaningful action, leadership is grounded in vision, and shared values inspire enduring impact. In an era shaped by unprecedented transformation, the Gala serves as a platform for advancing values-driven collaboration, global connectivity, and innovative breakthroughs. It recognizes the importance of multi-sector cooperation in addressing complex global challenges-where economic progress, social responsibility, and human insight must evolve together. The evening will highlight those whose work transcends boundaries: individuals and institutions who are driving sustainable innovation, building inclusive ecosystems, and shaping business models that uplift communities and create long-term societal value. From emerging technologies to cultural diplomacy, and from capital strategy to educational advancement, the Gala will catalyze bold conversations that chart the course for collective action and global influence. Beyond the Gala evening, select partners and honorees will be invited to take part in a thoughtfully curated series of private strategic meetings, international networking opportunities, and cultural exchanges, designed to foster trust, deepen collaboration, and accelerate long-term partnerships. For event or media inquiries, please contact: About the Hosts The Global Business & Peace Organization is dedicated to advancing ethical leadership, peace-building, and global dialogue through cross-sector collaboration and visionary initiatives. The Association for the Protection of Asian Women in America is a registered 501(c)(3) nonprofit organization dedicated to empowering women through self-empowerment, media advocacy, resource equity, and international collaboration. The organization is committed to advancing public awareness, fostering shared values, and contributing meaningfully to community development and societal well-being.
