‘Time to Hop In,’ Says Top Investor About Bitmine (BMNR) Stock

Digital asset treasury companies, often called DATCOs or simply crypto treasury companies, have become quite a thing in 2025, adopting a model first taken by Bitcoin evangelist Michael Saylor’s firm, Strategy. At the center of that model is the idea that a public company can use a mix of financial engineering tools – including equity sales, convertible senior notes, and various forms of debt – to raise substantial capital for the express purpose of building large cryptocurrency positions on its balance sheet.

One of the companies now using this model is Bitmine Immersion Technologies (NYSE:BMNR), and its approach fits into this broader shift while introducing a twist. While most DATCOs focus on Bitcoin, BMNR focuses on Ethereum, the second biggest crypto asset. The company, once primarily a Bitcoin miner, now describes itself as a “pioneering digital asset platform dedicated to maximizing ETH per share and advancing the Ethereum ecosystem through strategic treasury management and native protocol participation.”

Yiannis Zourmpanos, an investor who ranks among the top 1% of his peers, believes the company follows a model that sets it apart from a typical passive investment. The real distinction comes from the scale of its Ethereum holdings and the cash flow it generates through the Proof-of-Stake network. Bitmine controls more than 3.86 million ETH, representing roughly 2.9% of the entire Ethereum supply. Bitmine’s leadership has been clear that it intends to grow this position to 5% through an initiative it calls The Alchemy of 5%.

The 5-star investor believes that actively participating in the network rather than simply holding assets represents a “massive catalyst.” Unlike Bitcoin, which functions primarily as a store of value, Ethereum is a PoS blockchain, meaning that owning ETH grants the ability to validate transactions and earn yield (MAVAN). As noted, with Bitmine’s current stake, the company expects a 2.9% yield on its staked ETH, translating to roughly $400 million in income. That figure effectively creates a “hard base for revenue and BMNR stock price upside.”

By committing to lock up 5% of the total ETH supply, Bitmine effectively pulls those tokens out of market circulation. That reduction in freely available supply, assuming demand holds steady or rises, creates upward pressure on price. The company recently added 138,452 ETH in a single week, a purchasing rate that is 156% above its previous averages. “Thus,” Zourmpanos adds, “the stacking acceleration in the accumulation phase actively intensifies the treasury model.”

In addition, major Wall Street firms such as BlackRock and Franklin Templeton are moving deeper into tokenization initiatives, many of which are being built on Ethereum. As more traditional assets – equities, bonds, and real estate – migrate onto the blockchain, the demand for Ethereum block space is likely to rise. Each transaction involving a tokenized asset requires ETH for gas fees, and as one of the network’s largest validators and holders, Bitmine is positioned to benefit directly from the increased activity.

“Bitmine’s sheer ETH scale and yield engine turn it from a crypto proxy into a cash-producing infrastructure play,” Zourmpanos summed up. “Its compounding treasury, validator income, and push toward 5% network ownership create durable cash flow and asymmetric upside, offering investors a rare blend of growth, scarcity, and network-driven value expansion.”

Accordingly, Zourmpanos rates BMNR stock a Buy. (To watch Zourmpanos’ track record, click here)

This name seems to be under the radar on Wall Street right now, with only one analyst currently tracking its progress. That lone analyst is bullish, assigning BMNR a Buy rating and a $47 price target that points to ~20% upside over the next 12 months. (See BMNR stock forecast)

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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.