BitMine Stock Holds Gains as Ethereum Treasury Nears 5% Target

BitMine stock remained near $25 on Sept. 8 as the company expanded its Ethereum treasury to 5.93 million ETH. BMNR closed at $24.77 after recovering sharply from its June lows.

The treasury company said it bought another 28,086 ETH during the latest week. Its holdings now represent about 4.9% of Ethereum’s reported circulating supply.

BitMine Stock Rises as the Company Nears Key Milestone

The BMNR stock price has rebounded as the company continues its Ethereum accumulation. In a report today, the company said that it continued its buying, bringing its total holdings to 5,929,198 coins, meaning that it now needs to buy less than 71,000 coins to hit its 6 million target.

At the current price, these tokens are worth $176 million. This is important since the company now has $576 million in cash and marketable securities, meaning that it does not need to raise additional capital through shareholder dilution.

BitMine has been one of the most dilutive companies in the United States, with the amount of outstanding shares rising from 8.79 million in July last year to 579 million today. This dilution has accelerated as the company has intensified its dollar-cost averaging strategy.

The company will now stake all its tokens and start making a small return on investment. In this case, depending on Ethereum’s price, it will start making over $300 million a year, which it will use to repurchase its shares.

In addition to Ethereum, BitMine holds other important assets on its balance sheet. It holds 211 Bitcoin (BTC), a large stake in Beast Industries, and a stake in Eightco Industries, which gives it an exposure to OpenAI.

Ethereum Price is Set to Jump

There are signs that Ethereum is in a compression mode that may be followed by a breakout. The chart below shows that the three lines of the Bollinger Bands, a sign that its volatility has dropped.

At the same time, the coin is slightly above the crucial support level of $2,460, its highest point in April this year. A clear break above that level will point to more gains.

At the same time, the coin has formed a bullish flag pattern and is now in the flag section. It has also formed a golden cross pattern when using the weighted moving averages.

Therefore, while its too early to predict, chances are that the coin will have a bullish breakout, with the initial target being at $3,000. A surge above $3,000 raises the possibility that the coin will jump to $4,000 and above by the end of the year.

BitMine Stock Price Technical Analysis

BitMine also has encouraging technicals that could lead to further gains in the coming weeks. It has jumped from a low of $12.66 on June 29 to the current $25.12. It has jumped above the key resistance level of $23.67, its highest level in March, April, and May this year. Moving above that level confirmed the bullish breakout.

The stock has already formed a golden cross, as the 200-day and 50-day Weighted Moving Averages (WMAs) have crossed. This pattern means that the short-term momentum is accelerating.

Therefore, the stock will likely continue rising in the coming weeks or months as BitMine transforms from being a big dilutor into being a free cash flow machine. The next important target to watch will be the psychological level of $30. However, a drop below the key support level of $23 will invalidate the bullish outlook.

This article is for informational purposes only and should not be considered financial or investment advice. Cryptocurrency and equity markets remain volatile. Readers should conduct independent research before making investment decisions.