BitMine Immersion Technologies (BMNR) has amassed 3% of the circulating supply of Ether (ETH), but its returns are indistinguishable from its dismal peers due to its focus on the world’s second largest digital asset.
In fact, BitMine, like dozens of other crypto buying finance companies such as Michael Saylor’s Strategy (formerly MicroStrategy), has lost the majority of its market capitalization over the past few months.
BitMine owns 3,629,701 of the 120,695,639 ETH in circulation, but its inventory is 81% crash within 5 months.
Like many digital asset treasuries (DATs), Bitmine has lost most of its common shareholder funds since it hit a high in the days after becoming Ethereum treasury.
That chart is little different from dozens of other DATs that have lost at least half their share prices since early summer, including Nakamoto, Twenty One, Sixty Six Capital, Upexi, Nilam Resources, Green Minerals, Trident Digital Tech, Asset Entities and Classover Holdings.
Over the same period, Strategy’s common stock MSTR fell 56%. 1.6 times worse This outpaces the 21% decline in Bitcoin (BTC), the strategy’s underlying asset.
Embarrassingly, BitMine’s 81% decline is much worse than ETH’s 10% rise over the same period.
Bitmine stock is 81% crash within 5 months.
Read more: Bitcoin Treasury Nakamoto falls 98% – still pays big fee to David Bailey
Even crypto’s loudest bulls couldn’t pump this Ethereum treasure trove.
BitMine is proud to have Permable’s Tom Lee as its chairman, who has consistently and inaccurately predicted highly optimistic prices for BTC and ETH. He also heads the research firm Fundstrat, which has been covering the crypto sector since 2017.
Before Lee joined the company in June, the public company had long operated as a coolant-soaked BTC mining rig company.
It then began gobbling up ETH using various types of financial leverage, reaching a high of $161 per share amid initial optimism about using public equity to acquire digital assets.
The BTC financial company bubble burst almost as soon as it started. So in May, investors paid 23 times their expected BTC holdings for Nakamoto stock.
However, generic companies like BitMine are still working on SEC filings and raised capital in June and July before the market completely stalled.
The basic business model of using publicly traded stocks to crowdsource funding to big corporate treasuries in cryptocurrencies is proving to be disastrous for nearly every product by 2025.
Bitmine has simply followed the leadership of strategies that have destroyed shareholder value since the summer, as the market capitalization of cryptocurrencies has fallen 15% since the beginning of the year and many DATs have fallen by more than half and as low as 98%.
Incredibly, since June, Bitmine has not even been able to time its purchases to benefit from ETH’s modest rise this year. Because of the bad timing of the acquisition, the large Treasury actually lost billions of dollars on an average cost basis.
