BMNR stock at risk of a big drop as BitMine buys 40,000 ETH

The BMNR stock price retreated by over 1.18% on Monday as the recent crypto market crash continued and as BitMine continued its Ethereum accumulation.

BitMine stock was trading at $28.35, down by over 82% from its 2025 high. Its crash has wiped out billions of dollars in value as the market capitalization dropped from over $18 billion to the current $12.8 billion.

BitMine, the company Tom Lee runs, announced that it continued accumulating Ethereum (ETH) toward its goal of owning 5% of the market capitalization. It now holds 4.243 million coins and is on track to hit the 6 million target this year. It also owns 193 Bitcoin (BTC) in Eightco Holdings, shares worth $19 million, and a recent investment in Beast Industries.

BitMine, unlike Michael Saylor’s Strategy, has no debt and has over $682 million in cash and short-term investments. Most importantly, it has started staking its Ethereum holdings, a move that will generate over $500 million in annual revenue as long as the staking yield remains above 2.5%.

The main risk the BitMine stock faces is that Ethereum price continues to drop and has formed a risky pattern pointing to more downside in the near term. The chart below shows ETH price has formed a bearish flag pattern and has remained below all the moving averages and the Supertrend indicator.

These patterns, along with ongoing ETH ETF outflows, suggest the coin will continue falling, potentially to the key support level at $2,500. 

The ongoing Ethereum price crash will affect the value of its holdings in the near term. However, the only benefit is that Tom Lee believes the long-term ETH forecast is bullish and that it will hit $7,500. If this view is accurate, it means that the falling dollar cost averaging will be beneficial for the company in the long term.

BMNR stock price technical analysis 

The daily timeframe chart shows that the BMNR stock price has remained under pressure in the past few months. It formed a symmetrical triangle pattern and has now moved below its lower side and the 78.6% Fibonacci Retracement level.

The stock remains below the 50-day and 100-day Exponential Moving Averages. Therefore, the most likely scenario is that the stock continues to fall, with the next key support level to watch being the psychological $20 level.