TLDR
- Jim Cramer advised investors to avoid Bitmine (NYSE: BMNR) stock, saying it’s “not worth touching”
- Cramer recommended buying Bitcoin or Ethereum directly instead of investing in Bitmine shares
- Bitmine’s stock jumped 12% on Friday as crypto markets rallied following Fed Chair Powell’s dovish comments
- The company announced it holds approximately 1.52 million Ethereum and 192 Bitcoin, worth about $6.6 billion
- Bitmine added over 373,000 Ethereum tokens in one week, increasing holdings by $1.7 billion
Jim Cramer delivered a clear message to investors asking about Bitmine Immersion Technologies this week. The Mad Money host told viewers they should avoid the mining company’s stock entirely.
During his show, Cramer responded to a caller asking about BMNR’s recent gains. “My colleague David Faber did a very long piece about what’s the real value of this thing in terms of the amount of shares outstanding,” Cramer said.
His conclusion was direct. “I can only conclude that you don’t want to touch it.”
Instead of investing in the mining company, Cramer offered an alternative approach. “Simply purchase some Bitcoin if you wish to own such items. Purchase some Ethereum now.”
The TV host’s comments came as Bitmine’s stock was climbing. BMNR shares ended Friday’s session up 12.07% at $53.49.
The stock gained momentum as crypto markets rallied. Ethereum jumped 14% while Bitcoin rose 3.76% following dovish comments from Fed Chair Jerome Powell.
Bitmine’s Growing Crypto Holdings
Bitmine announced on Monday that its cryptocurrency treasury has expanded considerably. The company now holds approximately 1.52 million Ethereum tokens and 192 Bitcoin.
These holdings make Bitmine the largest Ethereum treasury company globally. The total value of their crypto assets reached approximately $6.6 billion.
The company added over 373,000 Ethereum tokens in just one week. This represented an increase of $1.7 billion in holdings value.
“In just a week, BitMine increased its ETH holdings by $1.7 billion to $6.6 billion,” said Tom Lee, chairman of Bitmine. Lee noted that institutional investors have shown interest in their “alchemy of 5%” Ethereum strategy.
The rapid accumulation of tokens helped drive investor interest in BMNR stock. Friday’s Ethereum rally above $4,650 directly boosted the value of Bitmine’s holdings.
Trading Activity and Options Volume
Options traders took notice of Friday’s movement. Volume jumped to more than double the daily average with 348,000 contracts traded.
Call options dominated the trading activity. The put/call ratio reached 0.33 as traders positioned for further gains.
BMNR stock has gained more than 32% over the past month. The recent crypto rally provided additional momentum for shares.
Bitmine operates as a blockchain business specializing in Bitcoin mining. The company offers hosting and self-mining services along with data center solutions.
They also sell mining equipment and provide infrastructure management software. Their services include power, cooling, connectivity, and security solutions.
Despite the stock’s recent performance, Cramer maintained his negative stance. When another caller asked about BMNR in a July episode, he said “we don’t play that game.”
Friday’s trading session saw BMNR benefit from the broader market recovery. Powell’s comments about potential interest rate cuts fueled optimism across digital assets.
The company’s Ethereum holdings increased from 1.15 million tokens to 1.52 million tokens over the past week. This accumulation strategy has positioned Bitmine as a major holder in the Ethereum ecosystem.
