BitMine Adds $294M ETH Despite Share Price Slide

BitMine Immersion Technologies executed one of the most significant corporate crypto acquisitions in recent weeks, adding 82,353 Ethereum to its balance sheet. This $294 million purchase brings the company’s total ETH holdings to 3,395,422 coins, representing more than 2.8% of the entire circulating Ethereum supply. The substantial accumulation comes at a time when ETH has been declining, currently trading around $3,617 after falling more than 6% in the past 24 hours.

The company’s aggressive buying strategy has placed it in an interesting position relative to its cost basis. BitMine has acquired its Ethereum at an average price of $3,909, meaning its current holdings are trading approximately 7.5% below their acquisition cost. This underwater position hasn’t deterred the company’s accumulation strategy, demonstrating a long-term conviction in Ethereum’s fundamental value proposition despite short-term price volatility.

Beyond its massive Ethereum position, BitMine maintains additional crypto and traditional assets on its balance sheet. The company holds 192 Bitcoin worth approximately $20 million, a $62 million stake in EightCo Holdings (ORBS), and maintains around $389 million in unencumbered cash. This diversified treasury approach provides financial flexibility while maintaining significant exposure to the crypto ecosystem.

Despite BitMine’s bold accumulation strategy, market sentiment toward the company’s stock has been decidedly negative. BMNR shares fell more than 8% on Monday alone and have declined approximately 25% over the past month. This disconnect between the company’s aggressive asset accumulation and its stock performance highlights the complex relationship between crypto fundamentals and traditional market sentiment.

The company’s position as the second-largest crypto treasury globally underscores the scale of its commitment. With over $12.5 billion worth of ETH on its balance sheet, BitMine trails only Bitcoin behemoth Strategy, which holds more than $69 billion worth of Bitcoin. This positioning makes BitMine a bellwether for institutional crypto adoption and corporate treasury strategies in the digital asset space.

Market confidence in BitMine’s strategy appears strong despite recent share price weakness. According to Myriad prediction market data, 95% of respondents believe BitMine will hold more ETH than the current second-largest Ethereum treasury, SharpLine Gaming, by the end of the year. Myriad operates as a unit of Dastan, the parent company of editorially independent Decrypt, providing additional credibility to these market sentiment indicators.

BitMine Chairman Tom Lee remains steadfastly optimistic about cryptocurrency prospects despite current market conditions. In recent comments on CNBC’s Squawk Box, Lee characterized the market as ‘consolidating’ while emphasizing strong underlying fundamentals. ‘If I look at fundamentals, like Ethereum, stablecoin volume has been exploding, application revenues are at all-time highs…right now fundamentals are leading price in crypto,’ Lee stated during his television appearance.

Lee pointed to crypto’s recent record-breaking $19 billion liquidation event as a potential reset point for the market, describing it as a ‘miniature rupture’ around which the market is consolidating. This perspective suggests that recent volatility represents healthy market mechanics rather than fundamental weakness, providing context for BitMine’s continued accumulation strategy during price declines.

The BitMine chairman’s year-end predictions reflect extreme optimism for both major cryptocurrencies. Lee forecasts Bitcoin potentially reaching $150,000 to $200,000 and Ethereum climbing to $7,000 before the calendar turns. Such moves would represent gains of approximately 150-200% for Bitcoin and nearly 100% for Ethereum from current levels, dramatically improving BitMine’s treasury valuation and investment performance.