TLDR
- BMNR stock jumped 24% on Friday and 62% overall after building the world’s largest listed corporate Ethereum treasury
- Company acquired 833,137 ETH coins worth $3 billion at an average price of $3,491.86 in just over a month
- Ethereum’s rally past $4,000 generated $423 million in unrealized gains for Bitmine
- Company announced a $1 billion share buyback program and filed a $1.8 billion shelf registration
- High-profile institutional investors including Bill Miller and Cathie Wood’s Ark Invest have shown interest
Bitmine Immersion Technologies has become the talk of Wall Street after its stock rocketed 62.3% following a bold bet on Ethereum. The company’s shares closed Friday at $51.43, marking a 24.59% gain for the day.
The rally stems from Bitmine’s aggressive move to build what it claims is the world’s largest corporate Ethereum treasury. In just over 30 days, the company accumulated 833,137 ETH coins at an average price of $3,491.86 per coin.
This $3 billion purchase has already paid off handsomely. When Ethereum pushed past the $4,000 level, Bitmine’s holdings generated over $423 million in unrealized gains.
The company wasted no time capitalizing on its crypto windfall. Bitmine announced a massive $1 billion share repurchase program. This buyback represents a major vote of confidence from management.
Institutional Interest Builds
The Ethereum strategy has caught the attention of heavyweight investors. Bill Miller and Cathie Wood’s Ark Invest have both shown interest in the company’s digital asset approach.
This institutional backing could provide additional momentum for the stock. Major fund managers rarely dive into volatile crypto plays without serious conviction.
Bitmine has also filed a $1.8 billion shelf registration. This move gives the company flexibility to raise capital quickly if opportunities arise.
The company’s rapid transformation hasn’t gone unnoticed by retail investors either. Trading volume has surged as momentum players pile into the stock.
Treasury Expansion Plans
Bitmine isn’t done accumulating Ethereum. The company has stated plans to increase its ETH holdings to 5% of the total supply.
This aggressive target would require purchasing millions more coins. Such a massive accumulation could take years to complete.
The company positions itself as the third-largest cryptocurrency treasury holder. Only MicroStrategy (MSTR) and MARA Holdings (MARA) hold larger crypto positions.
However, Bitmine’s rapid accumulation pace sets it apart from competitors. Most companies took years to build their current crypto treasuries.
The timing of Bitmine’s purchases proved fortuitous. Ethereum’s recent rally has validated the company’s strategy in spectacular fashion.
Community fair value estimates for BMNR range wildly from $0.43 to $60 per share. This massive spread reflects the uncertainty around the company’s crypto-focused pivot.
Some investors see tremendous upside if Ethereum continues climbing. Others worry about the volatility and regulatory risks of such heavy crypto exposure.
The company remains unprofitable and trades at a premium to most peers. The success of its Ethereum strategy will largely determine whether current valuations prove justified.
Bitmine extended its winning streak to four consecutive trading days on Friday as investors continued buying shares following the Ethereum rally past $4,000.