BitMine Immersion Technologies expanded its Ethereum treasury last week by purchasing another 9,946 ETH. The company also increased its stock buyback activity, repurchasing 6.1 million shares of BMNR.
The announcement helped lift BitMine’s stock by more than 5% in premarket trading. Meanwhile, the company is moving closer to its goal of controlling 5% of Ethereum’s total supply.
BitMine Adds Another 9,946 ETH
In a recent press release, BitMine confirmed that it acquired 9,946 ETH during the previous week. The purchase continues the company’s weekly Ethereum accumulation strategy, which has remained active since the beginning of the year.
BitMine now owns approximately 5.79 million ETH. According to the company, this represents around 4.8% of Ethereum’s total circulating supply.
The latest acquisition was larger than the previous week’s purchase of 7,430 ETH.
Most of BitMine’s Ethereum Is Staked
BitMine currently has about 4.92 million ETH staked, valued at approximately $9.6 billion. This means that nearly 85% of the company’s total Ethereum holdings are being used to generate staking rewards.
The strategy allows BitMine to earn additional returns from its ETH reserves while maintaining substantial long-term exposure to Ethereum.
However, staking also introduces risks, including validator penalties, liquidity restrictions and potential changes to Ethereum’s staking economics.
BitMine Expands Its Share Buyback Program
Alongside its Ethereum purchase, BitMine repurchased 6.1 million shares of its common stock. This was higher than the 5.5 million shares bought back during the previous week.
The company has now repurchased a total of 11.6 million shares under its authorized $4 billion stock buyback program.
BitMine Chairman Tom Lee said the company increased its buyback activity because of the recent rise in the ETH-to-BTC ratio. In his view, the strengthening ratio may indicate improving conditions across the cryptocurrency market.
Lee noted that the ratio had reached a three-month high of approximately 0.0300. He believes the increase could support further gains in Ethereum’s price.
BMNR Stock Rises More Than 5%
BMNR shares climbed by more than 5% in premarket trading following the company’s announcement. According to TradingView data cited in the report, the stock was trading near $16.
BitMine’s stock often moves in the same direction as Ethereum because the company holds a significant amount of ETH. As a result, changes in Ethereum’s price can have a major effect on BitMine’s asset value and investor sentiment.
The broader cryptocurrency market has also shown signs of recovery, with Ethereum moving back above the important $1,900 level.
Tom Lee Identifies Ethereum’s Next Price Targets
Tom Lee highlighted that Ethereum had reached its highest price in around ten weeks. He said technical analysts are now watching the $2,000 and $2,500 levels as possible near-term targets.
Lee also referenced analysis from Tom DeMark of DeMark Analytics. According to the comparison, Ethereum’s current price action may resemble the recovery of the S&P 500 following the October 1987 market crash.
However, technical comparisons do not guarantee future performance. Ethereum’s next move will depend on wider market conditions, investor demand and developments across the crypto industry.
BitMine’s continued ETH purchases and expanding share buyback program show that the company remains confident in Ethereum’s long-term prospects. Nevertheless, its growing exposure also makes BMNR increasingly sensitive to volatility in the Ethereum market.
