BitMine Bet Big on Ethereum — Now Shareholders Are Paying the Price
BitMine Immersion Technologies (BMNR) saw its stock fall by 27% on July 29, 2025, with an 11% decline during regular trading to $35.11, followed by a 15% drop in after-hours trading.
BitMine Stock Price Chart (Source: Yahoo Finance)
The stock decline erased gains from a 3,000% rally in early July, driven by the company’s Ethereum (ETH) acquisition strategy. The primary driver for the decline appears to be a June 2025 Private Investment in Public Equity (PIPE) deal, which raised $250 million to purchase ETH.
An analyst notes that the company filed a prospectus to register approximately 45 million shares and warrants for resale, leading to shareholder dilution and triggering a sell-off. While the exact share count awaits confirmation from an SEC filing, the dilution narrative is in line with the market reactions.
Following the speculation, investors are said to be frustrated, as seen on X, with one user stating, “Company raised funds by selling discounted shares/warrants to buy Ethereum, watering shareholders; the stock fell.”
The market’s response exposed the doubt over BitMine’s funding structure, overshadowing its Ethereum-focused strategy.
BitMine’s $2.3B Ethereum Bet Faces Growing Skepticism
The company holds 600,000 ETH, valued at approximately $2.27 billion at the current price of $3,789.91 per ETH, with a goal to acquire 5% of Ethereum’s total supply, approximately 6 million ETH tokens.
BitMine ETH Treasury (Source: Strategic ETH Reserve)
The company increased its holdings after the June PIPE deal closed on July 8, 2025. CEO Tom Lee claimed the Ethereum price could reach $60,000, based on studies from unidentified companies, although this estimate is speculative and not corroborated by third-party sources.
Market skepticism has affected the support for BitMine’s approach. Vincent Liu, CIO of Kronos Research, emphasized the need for “a well-thought-out plan to protect capital and promote liquidity,” hinting at concerns over BitMine’s execution.
An X post also supports this, stating, “$2B ETH and still didn’t set a new high. Very telling. Good ol’ Bitmine was Exit Liquidity.”
The gap between the current ETH price and the $60,000 projection has caused investor uncertainty, with the share fall showing doubt over returns in the near future in spite of BitMine’s considerable equity holdings.
Can BitMine Recover From This Market Volatility?
The company’s 3,000% surge in early July, driven by Ethereum purchase announcements, shows the volatility of crypto-linked stocks. Subsequent declines, including a 45% drop on July 9 and a 20% drop on July 10 after a $2 billion at-the-market offering, are testament to market sensitivity to the company’s financial moves.
While analysts like David Grider of Finality Capital see potential in Ether treasury firms, BitMine’s execution is in doubt, especially on liquidity and shareholder value preservation.
With Ethereum priced at $3,789.91—far below the speculative $60,000 prediction—the company’s strategy depends on major price appreciation, which could yield substantial returns, but dilution concerns and market volatility pose immediate risks.
