Bitmine Immersion Technologies disclosed $11.1 billion in total reserves including 5.74 million Ethereum, sending its stock higher. The company purchased 42,197 ETH worth $74 million over the past week as Chairman Tom Lee expressed optimism about U.S. crypto legislation. Bitmine now holds 4.8% of Ethereum's circulating supply.
Bitmine Immersion Technologies stock climbed after the company disclosed $11.1 billion in total reserves, including 5.74 million Ethereum worth $10 billion.
"We remain optimistic that U.S. cryptocurrency legislation making its way through Congress will act as a catalyst for Ethereum and other digital assets," Tom Lee, chairman of Bitmine Immersion Technologies, said.
The company purchased 42,197 ETH worth $74 million over the past week, up from 27,084 ETH the prior week. Bitmine now holds 4.8% of Ethereum's circulating supply, approaching its stated goal of 5%. The latest disclosure covers cryptocurrency, cash and strategic investments.
The stock has fallen 87% over the past 12 months to $14.36, reflecting investor concerns about the company's concentrated Ethereum bet. With ETH recovering to $1,735.00 from below $1,500 in June, the treasury strategy's viability hinges on further price appreciation and the passage of U.S. crypto legislation.
The disclosure comes as Strategy, the largest Bitcoin treasury company, sold $216 million worth of Bitcoin over the past week to fund dividend payments on its preferred stock and replenish U.S. dollar reserves. Strategy recently changed its governance structure to allow more Bitcoin sales for operations and dividends.
Bitmine trades at a price-to-book ratio of about 0.8x, compared with a software industry average near 2.9x, according to Simply Wall St. The discount reflects the market's skepticism about the company's Ethereum-heavy balance sheet as the stock fell 71% over the past year.
Ethereum was trading at $1,735.00 as of Monday, having recovered from below $1,500 in June. The company's $10 billion Ethereum position represents roughly 4.8% of the total circulating supply, making Bitmine the largest corporate Ethereum holder.
This article is for informational purposes only and does not constitute investment advice.
