Shares of BitMine Immersion Technologies Inc. surged on Monday following the company's announcement that it has significantly expanded its holdings in Ethereum, pushing it past the halfway point toward an ambitious goal of owning 5% of the cryptocurrency's total supply.
The stock, traded under the ticker NYSE:BMNR, rose 6.4% in response to the news, which highlighted BitMine's accumulation of 3.5 million ETH tokens, valued at approximately $13.2 billion when combined with its other crypto and cash assets.
According to the company's disclosure, BitMine now controls 2.9% of Ethereum's total supply, a milestone that Chairman Thomas "Tom" Lee described as a key step in their strategic plan.
"We are now more than halfway toward the ‘alchemy of 5%' goal," Lee said in a statement, referring to the company's long-stated objective of amassing a substantial portion of the digital asset.
BitMine reported adding over 110,000 ETH tokens in the past week alone, marking a 34% increase from the previous week. Lee attributed this rapid accumulation to the company capitalizing on recent market weakness, allowing it to expand its positions at favorable prices.
The holdings break down to 3,505,723 ETH tokens, each valued at about $3,639, alongside 192 Bitcoin and $398 million in cash reserves. This positions BitMine as the world's largest holder of Ethereum and the second-largest overall crypto holder globally, trailing only Strategy Inc., which boasts more than 641,000 Bitcoin worth nearly $67 billion.
Lee, a prominent figure in the crypto investment space, emphasized Ethereum's growing importance in areas like asset tokenization. He noted that institutional interest is accelerating as major financial players on Wall Street begin to explore blockchain infrastructure more deeply.
"Ethereum is a super-cycle story over the next decade," Lee said.
BitMine's strategy has attracted backing from high-profile investors, including ARK Invest's Cathie Wood, Founders Fund, Pantera, and Galaxy Digital. This support underscores the company's prominence in the cryptocurrency sector, where it also ranks as one of the most actively traded U.S. equities, with an average daily trading volume of $1.6 billion, placing it 48th nationwide.
The announcement comes amid a broader context of volatility in the crypto markets. Ethereum, the second-largest cryptocurrency by market capitalization, has seen fluctuations driven by factors such as regulatory developments, technological upgrades, and macroeconomic trends. BitMine's aggressive accumulation strategy appears to be betting on long-term growth, particularly as Ethereum transitions toward more efficient proof-of-stake mechanisms following its merge in 2022.
From a technical perspective, BMNR's stock price has shown signs of stabilization after a recent pullback. The shares rebounded from support levels near $34 to $35, which align with the 200-day exponential moving average. Analysts monitoring the stock note that maintaining closes above $42 could signal further upside, with potential resistance at $46 to $48, coinciding with the 20- and 50-day EMAs.
A sustained breakout above that range might target the $60 to $70 zone, an area that has capped previous rallies since August. Conversely, a close below $34 could invalidate the recovery and expose the stock to further downside toward $30.
On shorter timeframes, the stock has broken out from a descending channel and reclaimed the session volume-weighted average price (VWAP). It is now consolidating just above VWAP, indicating that buyers are maintaining control. The relative strength index (RSI) on the 30-minute chart is in bullish territory, suggesting momentum is returning after weeks of selling pressure.
BitMine's push toward 5% ownership of Ethereum raises questions about market concentration and the influence of large holders in the decentralized finance ecosystem. While some experts view this as a vote of confidence in Ethereum's future, others express concerns about potential impacts on liquidity and price stability. However, no direct conflicts in reporting were noted across available sources, which consistently highlight the company's progress and Lee's optimistic outlook.
Looking ahead, BitMine's trajectory will likely depend on broader crypto market trends and regulatory environments. With institutional adoption on the rise, as evidenced by investments from firms like those backing BitMine, the company positions itself at the forefront of what Lee calls a "super-cycle." Investors will be watching closely for further updates on holdings and stock performance in the coming weeks.
BitMine Immersion Technologies, based in the United States, specializes in immersion cooling technology for data centers and has pivoted heavily into cryptocurrency holdings as part of its business model. The company's Ethereum treasury is not just a financial play but also ties into its operational focus on blockchain infrastructure.
Lee's comments on institutional support align with recent trends where traditional finance intersects with crypto. For instance, major banks and asset managers have increasingly allocated resources to blockchain projects, with Ethereum serving as a foundational layer for decentralized applications and smart contracts.
The stock's trading volume and investor interest reflect a growing appetite for crypto-exposed equities. BitMine's ranking among top-traded U.S. stocks underscores its appeal to both retail and institutional traders seeking exposure to digital assets without directly holding them.
In terms of valuation, the $13.2 billion in combined crypto and cash assets provides a substantial backing for the company's market capitalization, which has fluctuated with crypto prices. At the time of the announcement, Ethereum was trading at $3,639 per token, contributing significantly to BitMine's asset base.
While the primary focus remains on Ethereum, BitMine's smaller Bitcoin holdings of 192 tokens add diversification, though they pale in comparison to leaders like Strategy Inc.'s massive Bitcoin portfolio.
As BitMine approaches its 5% goal, market watchers anticipate potential ripple effects on Ethereum's supply dynamics. With 2.9% already secured, the company is on track, but achieving the full target would require continued accumulation amid varying market conditions.
Lee's reference to the "alchemy of 5%" evokes the transformative potential he sees in Ethereum, drawing parallels to historical financial shifts. This narrative has resonated with investors, contributing to the stock's rebound.
Overall, Monday's announcement marks a pivotal moment for BitMine, reinforcing its status as a key player in the crypto space. As the company builds toward its ambitious target, it continues to draw attention from across the financial world, blending technology, investment, and speculation in the evolving landscape of digital assets.