Key Insights
- The BMNR stock price has crashed by over 80% from its highest point this year.
- BitMine has continued its Bitcoin accumulation strategy in this crypto crash.
- Technical analysis points to a more significant BitMine stock price crash.
BMNR stock has plunged over 81% from its yearly peak. The drop came as demand for Digital Asset Treasury (DAT) stocks weakened.
BitMine stock, which is associated with Tom Lee, was trading at $30, down from the all-time high of $160. So, is it a bargain or a value trap?
BitMine Ethereum Accumulation Continues
Tom Lee, FundStrat’s founder and BitMine’s Chairman, is bullish on Ethereum. He expects the token to rebound strongly. He believes it could hit $9,000 or more in the next few years. He kept accumulating Ethereum during the recent dip. The price fell from $4,960 in August to $2,820 today.
BitMine, once a Bitcoin mining firm, purchased Ethereum tokens worth over $70 million. This move has drawn attention to BMNR stock. It has bought 413,427 ETH tokens in the last 30 days, bringing its total holdings to 3,726,499. They are now worth over $10 billion.
Its holdings are about 3% of the total Ethereum market cap. This means that it is approaching the target of owning 5% of the supply. Lee has made the case for Ethereum in several interviews, especially on CNBC, where he is a contributor.
He believes Ethereum offers a key advantage over Bitcoin. Its staking feature generates consistent monthly returns.
Data compiled by StakingRewards shows that Ethereum has a staking yield of 2.88%. This means that the current holdings will generate at least $293 million in annual staking return.
This return will help to offset any decline in the Ethereum price. Additionally, Lee has cited Ethereum’s use cases. There, it dominates key areas like decentralized finance (DeFi), real-world asset tokenization (RWA), and non-fungible tokens (NFT).
For example, Ethereum now holds over $168 billion in stablecoin supply, giving it a market share of 54.6%. Arthur Hayes stated that Ethereum will keep its dominance. He emphasized that no other chain can disrupt it successfully.
Ethereum Price Has 2 Key Catalysts
Meanwhile, the Ethereum price has two major catalysts that may push it higher in the coming days or weeks. It’s a move that will boost the BitMine stock price.
First, the network will implement the Fusaka upgrade on Wednesday this week. They will introduce several EIPs that will ultimately boost its performance. The network will launch the PeerDAS feature to cut bandwidth needs.
It will lower layer-2 transaction costs by 40% to 60%. Cryptocurrencies often rebound after such major upgrades. Second, as the chart below shows, the Ethereum price has formed a giant falling wedge pattern on the daily chart.
This pattern consists of two descending, converging trendlines. A bullish breakout usually occurs as they near convergence. Traders often view this setup as a signal for potential upward momentum.
ETH price shows signs of a strong bullish breakout. Analysts see potential gains toward the $4,000 psychological level. This move could happen in the near term if momentum holds.
BMNR Stock Price Technical Analysis
Still, BitMine’s technicals suggest that the stock has more downside to go in the near term. It has moved below the important support level at $39.60, its lowest level on September 4 this year.
This price was the neckline of the triple-top pattern at $66.10. A triple-top is a common bearish reversal pattern. The stock has also formed a bearish flag pattern and remained below the 50-day and 100-day Exponential Moving Averages.
Therefore, the BNMR stock may continue falling as demand for digital asset treasury companies wanes. If this happens, the stock will likely drop to the psychological level at $20. It’s about 30% below the current level.
However, in the long term, chances are that it will rebound and possibly retest the triple-top point at $66.10. This rebound will happen as Ethereum rebounds and as sentiment on DAT companies improves.
Crispus is a distinguished Financial Analyst at, bringing over 12 years of expertise in cryptocurrency markets, specializing in Bitcoin and altcoins. Renowned for his sharp insights at the nexus of market trends and breaking news, Crispus delivers actionable analysis to empower investors. His work is prominently featured across leading platforms, including BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com, cementing his reputation as a trusted voice in the financial world.