- BitMine launched a $1B stock buyback while holding $401M cash and 625K ETH, showing strong focus on capital returns and Ethereum.
- The company aims to secure 5% of ETH supply and recently gained support from Peter Thiel-linked entities holding a 9.1% stake.
- BitMine’s stock has been volatile after a 240% surge and sharp drop, but the buyback plan could help stabilize prices over time.
BitMine Immersion Technologies announced a new $1 billion stock repurchase program approved by its Board of Directors. The open-ended plan allows the company to buy back shares in the open market and through negotiated transactions.
This move follows BitMine’s strategy to maximize capital returns as it aggressively accumulates Ethereum for its treasury. Chairman Thomas “Tom” Lee stated the company could repurchase shares when it offers the best expected return on capital.
BitMine currently holds $401.4 million in unencumbered cash and owns 625,000 ETH valued at $3,755 per token. Additionally, it holds 192 Bitcoin worth $118,021 per coin. The company’s net asset value per share, which includes cash and crypto holdings, stands at $22.76.
Ethereum Treasury Strategy Gains Momentum
BitMine has shifted its treasury focus primarily to Ethereum, placing it among leading publicly-listed ETH accumulation firms like SharpLink and BTCS. Lee described the company’s goal as achieving “the alchemy of 5%” of total ETH supply.
This ambitious plan positions BitMine as a top corporate Ethereum holder, further supported by a 9.1% stake acquisition earlier this month by Peter Thiel-linked entities.
The stock buyback plan comes at a critical time as BitMine aims to provide long-term shareholder value. Besides improving capital efficiency, the repurchase program signals management’s confidence in the company’s growth prospects.
Volatile Stock Performance Raises Questions
BitMine’s stock has experienced extreme volatility over the past month. The price began July around $40, soaring nearly 240% to $135 in early July. However, this sharp rally quickly reversed, with the stock retreating to $40-45 by mid-July. The security has since entered a consolidation phase, trading between $35-45.
Source: Google Finance
Currently priced at $32.57, the stock is down 3.92% with a daily volume of 1.33 million shares. This volatile pattern resembles a classic “pump and dump” scenario or reflects investor reaction to recent announcements. The consolidation suggests the market has found temporary balance after extreme swings.
