BitMine’s Stock Plunges After Bold Ethereum Valuation Claim
BitMine Immersion Technologies (BMNR) saw its stock plummet nearly 27% in a single day, despite revealing bold ambitions for Ethereum. The company, which recently surged over 3,000% after announcing large ETH purchases, failed to reassure investors with its latest presentation.
A slide shared by the firm projected Ethereum’s “implied value” at $60,000, citing unnamed research. But instead of boosting confidence, BMNR shares dropped 11% during the trading day and another 15% in after-hours, closing at $35.11 from a peak of $135 earlier in July.
BitMine Reveals 600,000 ETH in Treasury
During the company’s presentation, BitMine disclosed that it currently holds 600,000 ETH, valued at over $2.2 billion at current prices. The company plans to stake its holdings and eventually control 5% of Ethereum’s total supply.
The company aims to evolve into a fully US-based Ethereum validator network, aligning all operations geographically within the United States. This strategic move is part of BitMine’s broader effort to become a major community validator, reinforcing Ethereum’s ecosystem from a corporate level.
Ethereum Treasury Movement Gains Momentum
The broader market is watching the rise of corporate Ethereum treasuries. Experts believe this trend could mirror MicroStrategy’s effect on Bitcoin, potentially driving long-term inflows and price appreciation for ETH.
Venture capital firm Finality Capital noted that this shift toward corporate ETH holdings could be “a positive catalyst for Ethereum’s long-term price trajectory.” The firm also disclosed a financial position in BitMine, signaling institutional confidence despite the stock dip.
Other Corporations Accumulating ETH
BitMine isn’t alone in this strategy. SharpLink Gaming has acquired 438,000 ETH, while Bit Digital holds over 100,000 ETH. Blockchain Technology Consensus Solutions also raised $62.4 million to grow its ETH holdings to over 29,000.
Outlook for ETH Remains Bullish
While BitMine’s short-term stock performance disappointed investors, its Ethereum-focused roadmap, large holdings, and staking strategy suggest a long-term bullish outlook for ETH. With more firms entering the Ethereum treasury space, the narrative surrounding ETH as a digital reserve asset continues to grow.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.