Bitmine (NYSE:BMNR) closed Thursday at $14.36, gaining 1.48% in a shortened trading week due to the Independence Day holiday on Friday. The stock rose 5.9% over the four-session week, but its market value remains below the company's reported holdings of cryptocurrency, cash, and other assets.
As of June 28, Bitmine reported $9.8 billion in crypto, cash, marketable securities, and what it terms “moonshot” investments. This includes 5,700,040 Ether (ETH) valued at $1,569 each, 206 Bitcoin, $555 million in cash and marketable securities, a $180 million stake in Beast Industries, and $74 million in Eightco Holdings (NASDAQ:ORBS). The company's market capitalization based on common stock stands at $8.18 billion, implying a discount of roughly 13% to the reported asset value.
Bitmine's entry into the Russell 1000 Large-Cap Index on June 26 was a key milestone. FTSE Russell rebalanced the indexes after the U.S. close on June 26, with trading under the new lineup beginning June 29. The holiday-shortened week was BMNR's first full trading period following the rebalance. The stock climbed from $13.56 on June 26 to $14.36 by July 2, despite a dip to $12.80 on June 30.
The discount between Bitmine's stock price and its reported crypto holdings is a focal point for investors. The company's preferred stock offering from June—3.5 million Series A shares at a $100 liquidation value each—adds a $350 million claim on assets. After accounting for this, the residual asset value available to common shareholders is about $9.45 billion at the company's marks. With Ether trading at $1,624.95 on Saturday, the residual asset value would be approximately $9.77 billion, widening the discount to around 16%.
Chairman Thomas “Tom” Lee described last week as “challenging” for crypto holders, noting “window dressing” at the end of the quarter but reaffirming Bitmine's commitment to a “longer-term horizon.” The company purchased 27,084 ETH during the week and still expects to reach its 5% ETH staking goal in 2026. Bitmine reported that 4,879,157 ETH was staked as of June 28, which Lee claims is the largest staked position by any company. The projected annualized staking revenue is $211 million, with potential for $246 million if scaled out, based on a 2.75% seven-day yield.
The preferred stock offering is expected to generate about $273.8 million in net proceeds. Bitmine plans to use the cash for ETH purchases, staking, validator infrastructure, working capital, strategic deals, or stock buybacks. The preferred shares carry a 9.50% dividend on a $100 stated value, providing a fixed-income component for investors.
Traders are watching key levels, including Thursday's high of $15.25 and Tuesday's low of $12.80, as well as the $1,569 ETH price from Bitmine's latest filing. The regular NYSE session runs from 9:30 a.m. to 4:00 p.m. Eastern time. The stock's performance relative to its crypto holdings will remain a key metric as the company navigates market volatility and its new index membership.
