Don't want to trade it yourself?
Our desk runs DEX portfolios on profit share.
Add to Google Preferred Sources
BitMine Immersion Technologies shares fell nearly 5% in Friday premarket trading after Thursday’s 14.7% surge, with Ethereum slipping 2.33% to $2,449.94. B. Riley Securities maintained a Buy rating and raised its price target to $30. The company has accumulated over $14 billion in Ethereum and targets 5% of total supply, with a $4 billion buyback authorization. Chairman Tom Lee called Ethereum “vastly undervalued” and cited tokenization and AI agents as growth drivers. Technical indicators remain bullish despite a January death cross, with the stock trading above major moving averages. BitMine soared 46.5% in August alongside a 33% rise in Ethereum.
Key Elements
BitMine Immersion Technologies Inc. (NYSE:BMNR) pulled back nearly 5% in Friday premarket trading, a breather after Thursday’s 14.7% surge as investors locked in gains and Ethereum drifted lower.
The digital asset holding company saw its shares retreat alongside a 2.33% decline in Ethereum (CRYPTO: ETH) over the prior 24 hours to $2,449.94. Broader equity futures were mixed, with Nasdaq futures up 0.05% while S&P 500 futures slipped 0.23%.
The selloff came a day after B. Riley Securities reiterated a Buy rating on BitMine and lifted its price target to $30 from a previous level, underscoring continued Wall Street enthusiasm for the company’s aggressive Ethereum accumulation strategy.
BitMine has amassed more than $14 billion worth of Ethereum and has set a stated goal of eventually owning 5% of the cryptocurrency’s total outstanding supply. The company has financed those purchases primarily through common stock issuance, with shares outstanding climbing 42% over the past twelve months.
To counterbalance that dilution, the company authorized up to $4 billion in share repurchases and has already bought back nearly 20 million shares when the stock traded below $15. Unlike its Bitcoin treasury peer Strategy, BitMine carries no debt on its balance sheet. It did, however, recently issue preferred stock paying a 9.5% annual dividend, which functions similarly to debt given its seniority over common equity in a liquidation scenario.
Proceeds from that preferred offering are being deployed toward additional Ethereum purchases and the ongoing buyback program, which management hopes will offset some of the earlier share dilution.
Tom Lee’s Bullish Ethereum Thesis
Tom Lee, co-founder and head of research at Fundstrat Global Advisors and chairman of BitMine, has remained steadfastly bullish on Ethereum’s long-term prospects. Speaking on the Milk Road Show on August 28, he described the cryptocurrency as “vastly undervalued” and characterized its move to $2,500 as a “course correction.”
Lee pointed to tokenization and AI agents as fundamental growth drivers, arguing that traditional financial rails were built for humans rather than instant micro-transactions. He also laid out a scenario in which Ethereum could trade near $6,000 if Bitcoin (CRYPTO: BTC) reaches $150,000 and the ETH-to-BTC ratio returns to 0.04.
Robinhood Markets Inc. (NASDAQ:HOOD) CEO Vlad Tenev has echoed some of that optimism, citing a potential “tokenization supercycle” that could expand the addressable market to $500 trillion across non-traditional financial assets
On Wednesday, Bitcoin advocate Mike Alfred told Scott Melker on “The Wolf of All Streets” podcast that Bitcoin holding above $76,000 signals shifting market structures. “I could see Bitcoin at $300,000. I could see Ethereum at $10,000 or more,” Alfred said, adding that ETH treasury players like BitMine and Strive Inc. (NASDAQ:ASST) could outperform underlying digital assets during market expansions.
Despite Friday’s decline, BitMine’s technical setup remains constructive. The stock trades 16.5% above its 20-day simple moving average of $21.62 and 12.7% above its 200-day SMA of $22.35. It also sits above its 50-day and 100-day averages.
The MACD indicator remains above its signal line with a positive histogram, both suggesting bullish momentum in the near term. Benzinga Edge assigns BitMine a Momentum score of 70.79, indicating relatively strong price momentum.
One cautionary signal for longer-term trend followers: the 50-day SMA remains below the 200-day SMA following a January death cross, a pattern that could keep some traders on the sidelines. The 20-day SMA above the 50-day SMA, however, represents a shorter-term bullish alignment that often appears early in a trend repair.
Traders are likely watching $27 as potential resistance and $20 as a key support level.
August Performance and Valuation
BitMine was one of the best-performing stocks in August, soaring 46.5% for the month, according to data from S&P Global Market Intelligence. The rally tracked a 33% rise in Ethereum over the same period, which lifted BitMine’s overall net asset value.
The stock generally trades in line with that net asset value. At Friday’s price of roughly $26, shares carried a slight premium to the approximately $25 net asset value per share.
The August surge was driven by a confluence of factors including political tailwinds for cryptocurrencies, inflation concerns, and short squeezes on assets like Ethereum and Bitcoin. But the sustainability of those catalysts remains an open question, as they are difficult to model into a long-term investment thesis.
Cryptocurrencies have yet to achieve widespread adoption in the broader economy despite more than a decade of promotion by early advocates. Ethereum, at this juncture, functions primarily as a trading asset whose price moves are driven by investor sentiment rather than underlying economic utility. That reality makes it challenging to formulate a durable thesis for owning BitMine stock beyond a directional bet on Ethereum’s price.
For now, the company’s fortunes remain tightly linked to the digital asset’s trajectory, with management’s ability to trade around its Ethereum holdings serving as a potential
Once added, BigGo Finance appears first in Google Search Top Stories, so you get the broadest, most up-to-the-minute, and most comprehensive global financial news first.
Source: finance.biggo.com