BitMine Immersion Shifts Focus from Bitcoin Mining to Ethereum Holdings
BitMine Immersion (BMNR) is currently moving out of a phase of technical price consolidation, suggesting a potential upward breakout. At the same time, the company is making a significant transition from being primarily a bitcoin miner to becoming one of the largest holders of Ethereum. With Tom Lee from CNBC taking the lead as chairman, I have begun to invest in this venture, looking to grow my stake further as Ethereum and BMNR navigate the technical challenges we will discuss shortly. Under Lee’s guidance and through its “Alchemy of 5%” strategy, BitMine has accumulated over 2.4 million Ethereum, representing more than 2% of the total Ethereum supply. The company has raised approximately $333 million through stock sales to bolster its Ethereum holdings, providing investors like myself with direct exposure to Ethereum’s potential gains through an equity mechanism, particularly as institutional investors increasingly engage with decentralized finance.
The Evolution of Ethereum’s Role in Decentralized Finance
Ethereum is becoming a cornerstone for decentralized financial systems, facilitating various applications including tokenized assets, non-fungible tokens (NFTs), web3 gaming platforms, and stablecoins, which are currently experiencing a significant bull market. Previously, Ethereum’s bearish narrative compared to Bitcoin stemmed from its unlimited supply, contrasted with Bitcoin’s capped total of 21 million coins. However, this perspective has shifted dramatically. Following the Ethereum merge in 2022, which transitioned the network from proof-of-work to proof-of-stake, the dynamics of Ethereum’s supply have transformed. In essence, when the network is active with numerous transactions, the fees generated can actually lead to a reduction in the Ethereum supply, as more ETH can be destroyed than is produced through staking rewards. This presents a unique scenario, as it is uncommon to see physical miners depleting gold reserves in a similar manner.
BMNR’s Strategic Positioning for Future Blockchain Finance
BMNR’s strategy in Ethereum offers a leveraged opportunity, not just to capitalize on ETH, but also to engage in the potential evolution of the financial landscape towards blockchain-based finance. Currently, Ethereum futures have broken through a crucial resistance level around $4,150, a barrier that has held since the first quarter of 2025. Recently, ETH surpassed this resistance, establishing it as a support level and setting the stage for a fifth wave rally towards one of three Fibonacci projection targets: $5,169, $6,001, or even reaching as high as $7,346. Achieving any of these targets does not signal a reversal in trend; rather, it suggests that a correction is expected in the strong uptrend that started in April of this year, paving the way for the next bullish phase.
Investment Strategy and Market Outlook
As previously noted, I have initiated a position in BMNR at $61.89 with a modest allocation of 1.25% in our Active Opportunities account. Should the price surpass $64.35, I plan to increase my position to approximately 2.5%, and if we break above $72.10, I would aim for a 5% stake. The critical strategy here is to average up and expand my position as the uptrend becomes increasingly clear.
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Disclaimer
Gordon holds BMRN both personally and through his wealth management firm, Inside Edge Capital. All opinions expressed by contributors from CNBC Pro are their own and do not necessarily represent the views of CNBC, NBC Universal, their parent company, or affiliates, and may have been previously shared across various media platforms. The content is meant for informational purposes only and does not constitute financial, investment, tax, or legal advice, nor is it a recommendation to purchase any security or financial asset. This content is general and may not reflect the specific circumstances of any individual. Prior to making any financial decisions, it is advisable to consult with your own financial or investment advisor.
