TLDR
- BitMine holds 1.71 million ETH tokens worth $7.9 billion, making it the world’s largest Ethereum treasury
- Company’s total crypto and cash holdings reached $8.8 billion, up $2.2 billion from the previous week
- Stock trades $2.8 billion daily volume on average, ranking 20th among all US stocks
- Crypto NAV per share jumped to $39.84 from $22.84 on July 27th
- BitMine added over 190,500 ETH tokens in the past week with $562 million cash remaining for purchases
BitMine Immersion Technologies added more than 190,500 ETH tokens to its treasury last week. The company now holds 1,713,899 ETH tokens total.
The crypto treasury company’s holdings are worth roughly $7.9 billion at current ETH prices. BitMine also maintains $562 million in unencumbered cash for future acquisitions.
BitMine’s combined crypto and cash holdings hit $8.8 billion as of late Sunday. This represents a $2.2 billion increase from the previous week’s $6.6 billion total.
The company launched its ETH treasury strategy on June 30th, closing the initial acquisition on July 8th. In six weeks, BitMine has become the world’s largest Ethereum treasury holder.
Tom Lee, Fundstrat chairman and BitMine chairman, said the company added the tokens while pursuing what he calls the “alchemy of 5%” of ETH. BitMine aims to eventually hold 5% of all Ethereum tokens in circulation.
The rapid acquisition pace has been supported by institutional investors. ARK’s Cathie Wood, MOZAYYX, Founders Fund, Bill Miller III, Pantera, Kraken, DCG, and Galaxy Digital back the company’s ETH strategy.
Trading Volume Powers Growth Strategy
BMNR stock has become one of the most actively traded securities in the US market. The stock averaged $2.8 billion in daily trading volume over the past five days as of August 24th.
This trading volume ranks BitMine 20th among all US-listed stocks. The company trades behind Coinbase at 19th place and ahead of JPMorgan at 27th place.
Lee said the high trading volume helps BitMine raise capital and increase ETH holdings at a rapid pace. The liquidity allows the company to execute its treasury strategy more efficiently than peers.
Market Performance Metrics
BitMine’s crypto NAV per share reached $39.84 as of August 24th. This compares to $22.84 per share on July 27th, representing substantial growth in less than a month.
The NAV calculation divides total crypto and cash assets by fully diluted shares outstanding. BitMine has 221,515,180 fully diluted shares outstanding.
Sunday’s crypto market downturn affected the treasury value as Ethereum prices fell below $4,600 during US morning hours. The company had calculated its holdings at $4,800 per ETH on Sunday evening.
BMNR stock was down 2.6% in premarket trading Monday after rallying 12% on Friday. The stock price movements often correlate with ETH price fluctuations given the company’s treasury strategy.
BitMine ranks as the second-largest crypto treasury globally behind MicroStrategy. MicroStrategy holds 629,376 Bitcoin tokens valued at $71 billion.
The company filed earlier this month to raise an additional $20 billion through stock sales. This filing indicates BitMine plans to continue expanding its ETH holdings substantially.
BitMine also holds 192 Bitcoin tokens alongside its massive Ethereum position. However, the company’s strategy focuses primarily on accumulating ETH rather than diversifying across multiple cryptocurrencies.
Final Thoughts
BMNR essentially functions as a leveraged play on Ethereum price movements, making it attractive for investors bullish on ETH’s long-term prospects but carrying substantial volatility risk tied to crypto market swings.
The company’s institutional backing and high trading liquidity provide advantages, though the stock’s direct correlation with Ethereum prices means investors should expect the same volatility they’d see in crypto markets.
