BitMine Immersion Technology (BMNR) is officially doubling down on its quest to become the “Strategy of Ethereum,” ignoring a brutal $3 billion unrealized loss to snap up another 102,259 ETH last week. The $320 million acquisition pushes BitMine’s total stash to nearly 4 million tokens, securing roughly 3.2% of the entire circulating supply. While the broader market shivers under a 36% drawdown from August highs, Chairman Thomas Lee is signaling a total lack of fear, characterizing the current price suppression as a substantial discount to the future.
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The aggressive shift has transformed BitMine from a hardware-focused Bitcoin miner into the world’s largest corporate Ethereum treasury, now commanding a total crypto and cash war chest of $13.2 billion.
By utilizing its immersion-cooling tech to boost mining efficiency, the company is effectively “printing” digital capital to fund its goal of controlling 5% of the network, which is a milestone Lee calls the “alchemy of 5%.”
BitMine Defends the Staking Yield Advantage
The core of the BitMine thesis is a high-stakes bet that Ethereum’s Proof-of-Stake (PoS) model offers a superior corporate reserve asset compared to Bitcoin. Unlike Michael Saylor’s Bitcoin, which sits idle on the balance sheet, BitMine’s Ethereum can be staked to generate 3% to 4% annualized yields, effectively creating a “dividend” for the treasury without selling a single token.
“2025 saw many positive developments in digital assets,” said chairman Thomas Lee, “including positive legislation passed by the US Congress and favorable regulations, and by strengthening support from Wall Street”. This institutional validation is the shield BitMine is using to deflect criticism over its $3 billion paper deficit.
Supporters argue that the staking rewards act as a buffer against volatility, while critics warn that the 15-day “queuing” period for unstaking ETH creates a dangerous liquidity trap if the company ever needs to raise cash in a hurry.
Institutional Conviction Defends the $60,000 Target
While retail investors flee the recent “Oct. 10 price shock,” the big money is quietly backing Lee’s long-term vision. ARK Invest and Founders Fund have maintained their positions, viewing BitMine as a “leveraged proxy” that offers more upside than a spot ETF. Lee has even floated a theoretical “replacement value” for ETH as high as $60,000, suggesting that the current $3,000 price floor is a generational entry point for those with a five-year horizon.
“These strengthen our conviction that the best days for crypto are ahead and why we continue to accumulate ETH towards our ‘alchemy of 5%’ target,” added Lee. However, the path to 5% dominance requires the company to survive the final quarter of 2025.
With its stock trading at a premium 14.4 price-to-sales ratio, BitMine must prove its staking infrastructure, set to launch in 2026, can turn those paper losses into realized operating cash flow before Wall Street’s patience runs thin.
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