Tom Lee and BitMine’s New Ethereum Purchase Sparks Community Criticism
April 24, 2026 – By Lockridge Okoth, Edited by Mohammad Shahid
In a significant Over-the-Counter (OTC) transaction, BitMine Immersion Technologies, led by prominent crypto strategist Tom Lee, has acquired 10,000 Ether (ETH) from the Ethereum Foundation (EF) at an average price of $2,387 per ETH. The deal, confirmed by the Foundation, amounts to an approximate total of $23.87 million worth of ETH leaving the Foundation’s treasury.
Ethereum Foundation’s Treasury Sale: Purpose and Policy
The Ethereum Foundation stated that the proceeds from this sale will be utilized to finance ongoing core initiatives, including protocol research, ecosystem grants, and community development programs. The Foundation referred to its Treasury Policy released in June of last year, which outlines that regular sales of ETH are a planned and strategic part of its treasury management efforts.
The ETH sold was held in a multisignature wallet controlled by the Foundation and transferred via a block trade OTC transaction to BitMine. This move is consistent with the Foundation’s efforts to monetize parts of its treasury to support Ethereum’s long-term development and growth.
BitMine and Tom Lee: Aggressive ETH Accumulation
BitMine Immersion Technologies, chaired by Tom Lee, co-founder of Fundstrat, has been openly pursuing a robust institutional strategy to accumulate Ether. Since 2025, the company has established itself as one of the most visible and aggressive institutional buyers of ETH on public markets.
This purchase aligns with BitMine’s broader approach to ETH accumulation while the Ethereum Foundation simultaneously liquidates part of its holdings, reflecting a divergence in strategies between Ethereum’s institutional proponents and its foundational supporters.
Community Backlash and "Dogfooding" Concerns
The transaction has triggered renewed criticism in the crypto community regarding the Ethereum Foundation’s ethics and confidence in its native token. Some critics argue that the Foundation’s ETH sales undermine faith in Ethereum’s long-term value and raise questions about the Foundation’s internal commitment to the project.
A notable criticism came from an anonymous researcher known as 0xfoobar, who highlighted an alleged disconnect between the Foundation and its community. He pointed out that the Foundation does not pay its employees or contractors in ETH, which he views as a failure to "dogfood" — a term in crypto that refers to using one’s own product. According to 0xfoobar:
“It’s clear there is a lack of dogfooding here. If the employees and contractors of the Ethereum Foundation so strongly reject or do not understand cryptocurrency to the point where they refuse compensation in ETH, then they should not be working there. Period."
This sentiment underscores a growing discomfort among some ETH enthusiasts that while institutional players like BitMine ramp up purchasing, the Ethereum Foundation appears to be more lukewarm with its direct ETH support.
The Broader Implications
The Foundation’s defense, that ETH sales are a normal part of treasury operations, is met with skepticism by parts of the community. The contrast between the selling behavior of Ethereum’s core supporters and the aggressive buying stance of institutions like BitMine illustrates a tension about the future direction and internal confidence in ETH.
As of now, the Ethereum Foundation has not publicly responded to the "dogfooding" criticisms. The debate sheds light on the complexities of managing treasury assets while maintaining community trust and aligning with broader ecosystem values.
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Disclaimer: This article is intended to provide accurate and current information. Readers are advised to perform their own research and consult with professionals before making financial decisions.