Bitmine Continues to Load Up on Ethereum, Now Owns 4.9% of all ETH in Circulation. Is BMNR Stock a Buy?

Bitmine Immersion Technologies now owns nearly 5% of all outstanding Ethereum.

The company purchased 17,362 Ethereum tokens last week. It now holds over 6 million Ethereum tokens, collectively worth nearly $16.3 billion at Ethereum's current price of roughly $2,716 per token, as of this writing.

Is Bitmine's stock a buy?

Replicating a familiar strategy with a new cryptocurrency

Similar to how Strategy began buying up Bitcoin with firm capital in 2020, Bitmine began embracing this crypto-treasury strategy with Ethereum in mid-2025.

The company also appointed the famous market strategist Tom Lee as chair of its board of directors.

“Moreover, we continue to see affirming signs that a crypto bull market is underway, having started in late June,” Lee said in a recent statement. “In our view, institutions are still underweight crypto and we expect them to be adding to their exposure in the final months of 2026. With only a little more than a week left in calendar third quarter (3Q26), the outperformance of Ethereum as a macro asset continues to strengthen.”

Lee, in particular, has been bullish on Ethereum because it serves as the primary network for stablecoin transactions. Stablecoins are digital assets pegged to a commodity or currency, such as the U.S. dollar.

Many see stablecoins as an ideal way to execute more efficient payment transactions because you get all of the benefits of a digital asset without the inherent volatility associated with most cryptocurrencies.

In 2025, adjusted stablecoin transaction volume reached $10.9 trillion, according to Bessemer Ventures.

Is Bitmine Stock a Buy?

There are a few considerations regarding Bitmine stock.

The first concerns being a crypto-treasury company. A simple way to value these is to simply look at the net asset value of a company's crypto holdings and see what market cap the stock trades at relative to this metric.

As I mentioned, Bitmine currently holds about $16.3 billion in Ethereum, which is slightly above its market cap. The company also had about $340 million of cash and equivalents at the end of May.

So, in this regard, Bitmine stock is fairly valued.

Through the nine months ending in May, Bitmine also generated nearly $60 million in revenue and lost about $20.50 per share, although most of the loss is due to unrealized losses on its digital asset holdings, which can swing with market prices.

But with a market cap over $16 billion and less than $60 million of revenue through nine months, it's not like you can really value the stock on revenue, either.

This, in turn, makes Bitmine's value essentially dependent on Ethereum's. Trying to determine any near-term movements of Ethereum will obviously be difficult, but it's one of the few cryptocurrencies I like long-term.

As Lee said, if stablecoins continue to gain traction, which they very well could with the passage of the GENIUS Act, then Ethereum should benefit.

Ethereum is also one of the go-to networks for decentralized applications and finance, so it has real-world utility, which I believe is a key attribute when buying cryptocurrencies.

The real key is to monitor how the stock trades relative to the net asset value of the Ethereum it owns over time.

Bitmine also offers perpetual preferred stock

Investors can also consider taking advantage of Bitmine's perpetual preferred stock, which yields 9.5% annually. Perpetual preferred stock sits between corporate debt and common stock on the priority ladder.

That means perpetual stockholders are entitled to dividends before common stockholders. Bitmine's perpetual stock is also cumulative, meaning any skipped dividends accumulate and still must be paid later.

Bitmine used the capital it raised from its issuance of perpetual preferred stock to buy Ethereum. The risk of perpetual preferred stock is that if the company goes out of business, these shareholders are unlikely to recoup their principal.

Bitmine can also elect to redeem the perpetual stock at any time, though the redemption amount varies with the time elapsed since issuance.