Bitmine (BMNR) Stock: Dips as Firm Doubles Down on Ethereum with $104M Buy

TLDR

• BitMine buys $193M more ETH, stock dips amid Kerrisdale short position.
• BitMine’s Ethereum stash grows, but BMNR stock faces selling pressure.
• BMNR falls as BitMine ramps up ETH buying and faces short seller heat.
• BitMine now holds $12.4B in ETH while BMNR drops after Kerrisdale shorts.
• Ethereum buys soar past $400M for BitMine; investors question stock value.

BitMine Immersion Technologies, Inc. (BMNR) saw its stock fall again on Thursday morning following a sharp decline the day prior. Shares closed at $59.10 on October 9, down 1.50%, and dropped a further 0.78% to $58.72 in pre-market trading.

BitMine Immersion Technologies(BMNR) 

The dip came as the company intensified its Ethereum strategy with another significant purchase.

Ethereum: $104M Buy Expands Treasury Commitment

BitMine executed a new Ethereum purchase on October 10, acquiring 23,823 ETH tokens worth approximately $103.7 million. On-chain data from Lookonchain confirmed the transaction, which originated from a BitGo wallet and was sent to an address associated with BitMine. The firm has not officially commented on the latest transfer.

This marks the second major purchase within the same week, following an earlier acquisition of 20,000 ETH on October 8. The previous transaction, processed via FalconX, totaled approximately $90 million and aligned with BitMine’s continued purchasing pattern. Combined, both buys have added over $193 million in ETH to the company’s treasury.

With these new additions, BitMine’s October ETH purchases now surpass $407 million in value. The Nevada-based company remains focused on its stated goal of acquiring 5% of the total Ethereum supply. It now controls an estimated 2.83 million ETH, currently valued at approximately $12.4 billion.

Strategic Positioning: Dominance in Corporate Crypto Holdings

BitMine now holds the largest corporate Ethereum treasury globally, significantly outpacing any other public firm in terms of ETH reserves. Alongside its Ethereum stake, BitMine also retains 192 Bitcoin, valued at over $23 million. These combined holdings position the company as the second-largest crypto treasury overall, trailing only Michael Saylor’s Strategy.

The company continues to emphasize Ethereum’s future role in the financial system as justification for its treasury approach. CEO Tom Lee, a co-founder of Fundstrat, has consistently supported this long-term asset accumulation model. BitMine’s aggressive strategy indicates unwavering confidence in Ethereum’s utility and value.

While some remain skeptical, BitMine continues to maintain its strategy despite market volatility. The firm’s repeated actions in October demonstrate its commitment to becoming a central ETH stakeholder. The company shows no signs of slowing its pace.

Short Seller Reaction: Kerrisdale Bets Against BMNR

On October 9, Kerrisdale Capital disclosed a short position against BMNR, challenging the company’s business model. The investment firm criticized the digital asset treasury (DAT) approach as outdated, citing more efficient alternatives for crypto access. It argued that direct ETH purchases and ETFs offer more practical exposure than premium-based stocks.

Kerrisdale emphasized that its position targets BitMine’s stock model rather than Ethereum itself. It stated that BMNR’s market valuation cannot continue to justify premiums above its crypto assets. According to the firm, the DAT concept lacks originality and long-term viability.

The short thesis added downward pressure on BMNR, compounding the stock’s post-announcement losses. BitMine has yet to respond to Kerrisdale’s claims or address the sharp decline in its share price. The market’s reaction suggests growing scrutiny over digital treasury stocks amid evolving investor preferences.

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