Key Takeaways
Bitmine Immersion Technologies (BMNR) stock fell 4.10 percent to close at $19.06 on May 18, despite the firm announcing its crypto, cash, and investment holdings now total $12.6 billion.
"Over the past week, we acquired 71,672 ETH. We view the recent pullback of ETH to below $2,200 as an attractive opportunity," Thomas "Tom" Lee, Chairman of Bitmine, said in a statement released May 18.
The company’s treasury now includes 5,278,462 ETH, valued at $2,191 per token, and 202 Bitcoin, according to the release. The firm’s ETH holdings represent 4.37 percent of the total circulating supply. Bitmine also holds $685 million in cash and strategic investments in Beast Industries ($200 million) and Eightco (ORBS) ($83 million).
The market's reaction highlights a growing disconnect between the share price and the net asset value of companies with large crypto-treasuries, even after Bitmine's recent uplisting to the New York Stock Exchange on April 9. The company is 87 percent of the way toward its goal of holding five percent of all ETH, a milestone it expects to reach in 2026.
Bitmine is leveraging its holdings through its "Made in America Validator Network" (MAVAN), an institutional-grade staking platform. The company disclosed that 4,712,917 ETH, worth approximately $10.3 billion, is currently staked. This operation accounts for over 89 percent of Bitmine's total Ethereum treasury.
The staking activities are a significant revenue source. According to the company's report, current annualized staking revenues are $289 million. Based on a seven-day yield of 2.80 percent, the company projects potential annual rewards of $324 million once its ETH holdings are fully staked.
The stock's performance presents a puzzle for investors. Despite BMNR being the 133rd most traded stock in the US with an average daily volume of $857 million, its valuation has not kept pace with its aggressive asset accumulation. This divergence occurs as the company and its backers, including ARK's Cathie Wood and Tom Lee, continue to pursue the "Alchemy of 5%" strategy, betting on the long-term value of the Ethereum network for tokenization and AI infrastructure.
This article is for informational purposes only and does not constitute investment advice.
