BitMine Immersion Technologies (BMNR), the world’s largest corporate Ether holder, said it acquired Ethereum “more aggressively” during the weekend market crash. The company’s average purchase price was $4,154 per token, according to a Monday post on X.
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In total, BitMine purchased 202,037 ETH, valued at about $827 million, as part of what it called an “opportunistic accumulation phase.” The company’s total holdings now exceed 3 million ETH, representing about $13.14 billion in combined assets, including $12.9 billion in crypto, $104 million in cash, and a $135 million stake in Eightco Holdings.
Tom Lee Says “Volatility Creates Advantages for Investors”
Chairman Tom Lee, who also heads research at Fundstrat, said that BitMine capitalized on the recent price decline to accelerate its Ether accumulation.
Lee said that “the crypto liquidation over the past few days created a price decline in ETH, which BitMine took advantage of.”
He also noted that the company’s latest purchases marked a key milestone in its long-term goal, adding, “We are now more than halfway towards our initial pursuit of the ‘alchemy of 5%’ of ETH.”
Lee added that market volatility can create valuable openings for long-term investors. “Volatility creates deleveraging, and this can cause assets to trade at substantial discounts to fundamentals, or as we say, ‘substantial discount to the future,’ and this creates advantages for investors, at the expense of traders,” he said.
Market Adjusts as BitMine Deepens Its Strategy
The company’s purchases came after a sharp $19 billion liquidation event that triggered widespread selling across major crypto exchanges. Analysts said that large-scale corporate buying like BitMine’s could encourage other treasury-focused firms to adopt similar accumulation strategies.
BitMine said the new acquisitions bring it “more than halfway” toward its treasury goal and reaffirm its strategy of disciplined accumulation through volatility.
BitMine Stock Faces Pressure
Despite the company’s buying spree, BitMine shares have fallen 10% over the past five days, according to Google Finance. BMNR was the 22nd most widely traded stock on U.S. markets as of Oct. 10, based on a five-day average trading volume of more than $3.5 billion.
The decline followed a report from Kerrisdale Capital, which took a short position against the company and described its business model as “on its way to extinction.”
To sum up, BitMine said its treasury is now “more than halfway” toward achieving its 5% Ether supply target. The company plans to continue accumulating during market corrections, emphasizing what Lee called a focus on “advantages for investors, at the expense of traders.”
Is BitMine a Good Stock to Buy?
Based on TipRanks data, ThinkEquity analyst Ashok Kumar initiated coverage on BitMine Immersion Technologies with a Buy rating and a $60 price target. This target implies a potential upside of about 13% from the company’s most recent close.
