Bitmine Immersion Technologies faces a significant mark-to-market test when U.S. markets reopen Monday after a sharp weekend decline in Ethereum pushed the company's massive crypto holdings below their last reported valuation. The stock closed Friday at $19.87, down 9.7%, capping a 10.4% weekly drop.
Ether traded near $2,186 on Sunday, well below the $2,366 price used by Bitmine in its most recent holdings update filed on May 11. The company disclosed it held 5.21 million ETH, 201 bitcoin, and $775 million in cash, along with investments in Beast Industries and Eightco Holdings. Total crypto, cash, and "moonshot" positions were valued at $13.4 billion as of May 10.
Based on Sunday's Ether price, Bitmine's ETH stash alone is worth roughly $11.4 billion -- about $936 million less than the value calculated using the company's May 10 reference price. The gap underscores the volatility inherent in Bitmine's strategy as a public market proxy for Ethereum.
Chairman Thomas "Tom" Lee has positioned Bitmine as a long-term Ethereum play, emphasizing the company's commitment to staking. In a recent statement, Lee said Bitmine plans to "hold and stake" its ETH and is slowing its weekly ETH purchases as it nears the goal of holding 5% of the total ETH supply. He described the move as a bet on digital assets recovering, stating that a "crypto spring has commenced."
Bitmine's staked ETH totaled 4.71 million tokens on May 10, generating annualized staking revenues of $319 million, according to Lee. However, the strategy carries clear risks. A sustained drop in Ether prices, lower staking yields, or tighter regulation could transform Bitmine from a growth story into a leveraged bet on crypto markets.
The broader crypto stock sector also struggled Friday. Strategy, the bitcoin treasury company, fell 5.2%. MARA Holdings lost 6.3%, and Riot Platforms dropped 4.7%. The Nasdaq-tracking QQQ declined 1.6%, while the S&P 500 SPY slipped 1.2%.
Bitmine's uplisting to the New York Stock Exchange in April remains a key bullish factor. The company expanded its share buyback program to $4 billion, allowing it to repurchase stock if management deems it undervalued. NYSE executive Chris Taylor called Bitmine a "strong addition" to the exchange.
Volume was elevated Friday with nearly 49.7 million shares traded. After hours, shares were flat near $19.82. NYSE regular hours run from 9:30 a.m. to 4:00 p.m. ET Monday, and traders will be watching whether weekend crypto moves push BMNR lower or if buyers see the drop as a buying opportunity.
