Dragonfly managing partner Haseeb Qureshi has sharpened his protection of Ethereum’s valuation, arguing that critics are the use of the bad financial framework and that ETH ought to light be analyzed extra admire an early-stage Amazon than a worn “rate” inventory.
Talking on the Milk Road Present on 9 December 2025, Qureshi revisited his now-viral valuation conflict with investor Santiago “Santi” Santos, hosted by ThreadGuy, which reignited the controversy over how to rate layer 1 blockchains. At the core of Qureshi’s thesis is a easy but controversial advise: rate earnings on Ethereum is effectively pure margin and can be treated as profit, no longer as “earnings” in the venerable company sense.
“Blockchains don’t comprise earnings. They’ve profit,” he said. “When chains price expenses, that’s profit. There’s no expenses for a chain. Chains don’t pay expenses, merely? There’s no AWS cyber internet internet hosting rate for Ethereum.”
Qureshi Pushes Support On Claims Ethereum Is Puffed up
Santos had argued that Ethereum is buying and selling at “300 plus” times sales, calling these label-to-sales (P/S) stages “embarrassing” relative to venerable corporations and suggesting valuations are “manner earlier than their skis.” Qureshi did no longer contest the magnitude of the multiples but rejected P/S because the merely lens.
“He became insisting in the controversy that the merely manner to switch in quest of at these items is label of sales. So ought to you look for at label sales for Ethereum, it’s one thing admire 380. Whenever you look for at Amazon, I mediate Amazon topped out at label of sales of 42. And this became at some level of the bubble,” Qureshi said.
He countered that for a blockchain, what equity merchants would name “sales” is nearer to the GDP or GMV of the on-chain financial system, which is no longer straight measured at the protocol stage. Essentially the most easy neat, observable line is rate earnings, which he treats as accept earnings.
“The sales in some sense is admire the GDP of the blockchain which we’re no longer measuring,” he argued. “The merely thing to love for a chain is the profit… The merely thing to love is what’s the profit of Ethereum relative to the profit of Amazon.”
That opens the door to the Amazon analogy. Qureshi emphasized that Amazon delayed profitability for nearly twenty years to prioritize command, yet public markets light assigned it extraordinarily excessive earnings multiples.
“Amazon literally made no profit, no profit except in total about Twenty years in as a industry,” he said. “In the twelve months I mediate it became 2013… Amazon had a PE ratio… over 600 whereas today time the PE ratio of Ethereum surely is one thing admire 380.”
Because Ethereum’s P/S and P/E converge below his “expenses = profit” assumption, Qureshi’s argument is that merchants ought to light compare ETH’s 300–380x a couple of to Amazon’s P/E ancient previous, no longer to its unprecedented lower P/S, in the event that they’ll use a single headline ratio at all.
The broader context, he pressured out, is that Ethereum and diversified L1s are light in an exponential manufacture-out fragment, extra corresponding to early cyber internet or e-commerce infrastructure than to slack-cycle dividend payers.
“This technology has been getting bigger and bigger over time. It’s gobbling up your total world of finance from where it started,” he said, referencing his essay “In Protection of Exponentials.” “None of [these technologies] started printing a bunch of profit straight in the major 5 or even 10 years.”
Despite choppy label inch and underperformance of altcoins versus AI equities and gold, Qureshi said his conviction in the long-dated Ethereum thesis has increased, no longer weakened, thru the overall public debate.
“If one thing else, I in actual fact comprise change into extra confident in my opinion,” he said, adding that nothing field fabric had changed in the last months to clarify a first-rate portfolio rethink. “What precisely has changed in the last 2 months between, , ETH going to admire $4,800 and ETH being at $3,000? The answer is basically nothing.”
Shared some put up-debate reflections on my L1 debate with @santiagoroel, my rebuttal in opposition to the “crypto is all a wide on line casino” doomers, and where I mediate we’re in the crypto macro cycle 👇 https://t.co/9uMJFuLVrX
— Haseeb ＞|＜ (@hosseeb) December 9, 2025
For Qureshi, a right repositioning would require a clear invalidation of core assumptions—equivalent to a quantum break of cryptography or a structural give contrivance in on-chain stablecoin question. Transient swings, in his opinion, are merely the pendulum of sentiment engaging around a delicate-fixed elementary anchor.
His message to skeptics is that if markets tolerated Amazon at 600x earnings while it scaled actual into a dominant platform, dismissing Ethereum at roughly 300–380x on a “too excessive on P/S” argument on my own is analytically inconsistent.
At press time, ETH traded at $3,325.
