Shares of BitMine Immersion Technologies (NYSEAMERICAN: BMNR) soared early Monday after the company surpassed USD$500 million in Ethereum (ETH) holdings through fresh purchases.
However, the rally did not last. Despite a brief 45 per cent spike that sent the stock to an intraday high of USD$59.00—up sharply from Friday’s close of $40.62—the stock ended the day at $41.02, barely 1 per cent higher.
The sudden price movement followed BitMine’s aggressive expansion into Ethereum accumulation. In late June, the company announced a private placement aimed at growing its ETH treasury. It has moved quickly since then. BitMine now holds 163,142 ETH, valued at roughly USD$490 million based on the token’s current price of just over USD$3,000.
However, Ethereum’s declining price shaved millions off BitMine’s stockpile by the end of the trading day, dragging the perceived milestone back under the USD$500 million mark.
Over the past month, BitMine stock has experienced extreme volatility.
It has closed as low as USD$4.26 and as high as USD$135, reflecting sharp investor sentiment swings. While the stock remains up 727 per cent month-over-month, it has dropped nearly 62 per cent over the past week, underscoring the instability tied to its Ethereum-focused strategy.
BitMine Board Chairman Thomas Lee addressed the fluctuation in a statement, claiming the USD$500 million benchmark “validates our mission to increase our stake in the Ethereum network.” Lee, who also serves as the managing partner at Fundstrat Global Advisors and is widely regarded in financial circles, became BitMine’s board chair just as the company shifted its strategy toward ETH accumulation.
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A broader trend among crypto mining firms
The firm also disclosed that it raised USD$250 million through its latest stock sale to support this strategy. The announcement of the fundraise and Lee’s appointment triggered investor enthusiasm, which in turn sparked Monday’s brief price surge. However, market volatility and the falling price of Ethereum quickly erased most of those gains.
In further remarks, Lee doubled down on Ethereum’s potential, referencing a statement by Robinhood (NASDAQ: HOOD) CEO Vlad Tenev.
Tenev had described tokenization as “the greatest capital markets innovation since the central limit order book.” Lee agreed and added that Wall Street is now “converging onto crypto,” calling Ethereum “the layer-1 blockchain with the greatest share.”
BitMine’s pivot reflects a broader trend among crypto mining firms searching for stability amid challenging conditions. Last year’s Bitcoin halving significantly reduced mining rewards, making it harder for companies to maintain profitability.
Additionally, rising energy costs and increased competition have added pressure. In response, several firms are exploring alternative revenue streams.
In addition to BitMine, other companies have started to mirror this strategy. BIT Mining’s shares surged 143 per cent last week after it announced a USD$200–$300 million capital raise to build a Solana treasury.
Furthermore, SharpLink Gaming (NASDAQ: SBET), originally a gambling marketing firm, has also pivoted to Ethereum accumulation. Its shares have jumped more than 300 per cent year-to-date, driven by recent ETH purchases.
The model was pioneered by MicroStrategy (NASDAQ: MSTR) (now just Strategy) in 2020. The software firm famously shifted its focus to Bitcoin acquisition, and since then, its share price has soared nearly 3,000 per cent. Lee referenced this in his comments, noting that holding large crypto treasuries can create what he termed a “sovereign put.”
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joseph@mugglehead.com
