Bitmine Reduces ETH Purchases and Allocates $86M to Stock Buyback

Summary

Bitmine Immersion Technologies (BMNR) has reduced its weekly Ethereum purchases to 7,430 tokens, redirecting $86 million toward a share buyback program benzinga_article. The company has reached 96% of its ‘5% supply’ target, currently holding 5.78 million ETH AnueSec+ 2. Despite a $9.1 billion unrealized loss on its treasury due to ETH price volatility, the company reported a 22x surge in staking revenue to $46.5 million Tip Ranks+ 2.

Impact Analysis

So basically, Bitmine is admitting that their ‘5% Alchemy’ goal is effectively mission accomplished at 96% completion AnueSec+ 2. The pivot to an $86 million buyback isn’t a retreat from crypto; it’s a tactical recognition that BMNR stock has become a cheaper way to buy ETH than buying ETH itself. While the market is fixated on the eye-watering $9 billion paper loss Tip Ranks, they’re missing the massive cash flow engine underneath—staking revenue is projected to hit nearly $250 million annually Tip Ranks. By redirecting capital from ETH purchases to buybacks, CEO Tom Lee is calling the market’s bluff on BMNR’s valuation, which recently traded at a measly 0.68 P/B ratio . I’d read this as a ‘coiled spring’ setup: you have a shrinking share count, dominant staking margins, and a stock testing a key breakout at $16.05 benzinga_article. If ETH prices stabilize as Lee predicts benzinga_article, the combination of massive buybacks and institutional inclusion in the Russell 1000 could trigger a violent re-rating Tip Ranks.