BitMine Nearing Inflection Point as Ethereum Buying Nears Key Target

BMNR was trading at $15.80 on Friday, down substantially from last year’s high of $160. It remains slightly above the year-to-date low of $12.86.

BitMine Immersion Will Hit Its 6 Million Target Soon

BitMine has accumulated over 5.77 million $ETH coins, which are now valued at over $11 billion. This means that the company needs to buy 222,532 Ethereum coins, currently worth over $422 million. If the trend continues, it will hit its 6 million target in the coming months.

Completing the purchases will benefit BitMine’s shareholders in two main ways. First, it will likely conclude the dilution that has pushed its outstanding shares to 603 million from less than 239 million last year.

Second, the company will now transition from being a highly dilutive firm into a cash generator. It will achieve that through staking its Ethereum holdings, which will generate about 3% annual return. The estimated annual return will be about 180,000 coins, which are now valued at over $342 million.

Estimates by two analysts are that BitMine’s annual revenue will jump to $125 million this year. They also expect that the revenue will jump to $429 million next year.

For example, SharpLink ), a similar company, has already generated 23,918 $ETH tokens in revenue since it started staking its tokens.

BitMine Has Become Highly Undervalued

Meanwhile, there are signs that the company is highly undervalued. It has a market capitalization of $9.52 billion, much lower than its Ethereum holdings of $11 billion.

Most notably, unlike Strategy ), BitMine has no debt. Its only liability is from its preferred stock, which is expected to cost it almost $40 million a year.

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