BMNR Stock Eyes Rebound as it Boosts Share Buybacks 300% to $4 Billion

The BMNR stock price remains in a narrow range as the crypto market weakness continues. BitMine rose to $21.25 today, April 9, up slightly from the year-to-date low of $17. It may be on the cusp of a strong bullish breakout as the management boosts its share repurchase amount.

BMNR Stock May Rebound Amid the Share Buyback Boost 

Tom Lee believes that the BMNR stock price is highly undervalued and is executing a large share buyback. In a statement, the company announced that it will increase the amount of repurchases to $4 billion, up from $1 billion, a 300% surge.

Companies buy back their shares when they believe that they are undervalued. Their goal is to boost their earnings per share as the number of shares drop.

BitMin’s main source of revenue is from its Ethereum holdings, which are generating millions of dollars in revenue through staking. It recently launched MAVAN, its staking product, which will also provide staking solutions to other companies.

BitMine holds over 4.8 million ETH tokens worth over $10.4 billion today. With Ethereum staking yield being at 3%, the company could make over $312 million a year in staking revenue. In a statement, Lee said:

“There may be a time in the future when Bitmine shares are trading below intrinsic value, and the Company wants to be in a position to accretively retire common shares.”

In another major development, BitMine received an uplifting to the main board of the New York Stock Exchange (NYSE), the biggest stock exchange in the United States.

Looking ahead, the main catalyst for the BMNR stock price will be Ethereum’s price action, which may rebound in the coming weeks, especially when the ceasefire between the US and Iran holds. It has strong catalysts, including its market share in the real-world asset tokenization industry and the falling supply in exchanges.

BitMine Stock Price Technical Analysis 

The daily chart shows that the BMNR share price may be on the verge of a strong bullish breakout in the near term. It has formed a large double-bottom pattern at $17.25 and a neckline at $23.40, its highest point on March 16. A double-bottom is one of the most popular bullish reversal signs in chart analysis.

BitMine is also attempting to flip the 50-day Exponential Moving Average (EMA), which will confirm the bullish outlook. The Relative Strength Index (RSI) has been rising, moving from the oversold level of 25 in February to 53.

Therefore, the stock will likely bounce back, initially to the neckline at $23.40, followed by the 23.6% Fibonacci Retracement level at $28.55, which is about 35% above that level. The bullish outlook will become invalid if it drops below the support level at $17.15.