Bitmine Adds 10,399 ETH to Treasury, Repurchases 4.5M Shares Amid $8.8B Paper Loss

Bitmine doubles down on Ethereum but BMNR investors stay cautious Bitmine Immersion Technologies (BMNR) continued its aggressive ETH accumulation this week, adding 10,399 ETH to its treasury and repurchasing 4.5 million shares — moves that underscore management’s conviction in Ethereum even as the stock slipped toward $17. What happened - Bitmine bought 10,399 ETH over the past week, bringing its total holdings to 5,797,813 ETH — roughly 4.8% of Ethereum’s circulating supply. - The purchase follows a 9,946 ETH buy the prior week, meaning Bitmine added more than 20,000 ETH to its balance sheet in two weeks. - The company also repurchased 4.5 million common shares in the most recent week, the third consecutive week of buybacks and lifting total repurchases to more than 16 million shares. Why management is buying Chairman Tom Lee tied the continued accumulation to ETH’s recent relative strength versus US tech stocks. He noted ETH outperformed the Nasdaq 100 by about 25% in July — its widest margin since July 2025 — and pointed to a prior rally where ETH rose from $2,375 in July 2025 to $4,057 the following month. Lee framed those moves as evidence of “strengthening fundamentals,” while cautioning that past performance doesn’t guarantee future gains. Staking, revenue and unrealized losses - Bitmine has staked 4,917,189 ETH, nearly 85% of its holdings. At the company’s reported valuation, the staked position is worth roughly $9.2 billion. - Bitmine projects about $247 million in annualized staking revenue, generating ETH-denominated income while holding the asset on its balance sheet. - Despite the accumulation, the company is carrying large paper losses. DropsTab estimates an unrealized loss on Bitmine’s ETH position of around $8.8 billion. Risks and investor trade-offs Bitmine offers a way for U.S. investors to gain equity-market exposure to Ethereum without direct custody, but that exposure comes with layered risks: - Ethereum price volatility and the company’s cost basis - Operational and validator risks tied to a large staked position - Corporate risks such as management decisions, capital allocation, dilution from financing, and buyback funding choices How the market reacted The latest ETH purchase and continued buybacks did not spark a positive market response. BMNR traded near $17.06 on Aug. 3, down about 1.3% on the day (intraday high $17.23, low $16.63). Technical snapshot - Immediate resistance: 61.8% Fibonacci retracement at $17.15. A daily close above that could clear a path to the 50% retracement at $18.49. - Higher resistance levels: $19.82 and $21.48, though surmounting those would require stronger momentum and volume. - Support structure: BMNR remains above an ascending trendline from its June low near $12.81, suggesting the short-term recovery hasn’t failed. A rejection at $17.15 could push the stock back toward the trendline near $16; stronger support sits at the 78.6% Fib level of $15.24. A decisive break below that would increase the chance of retesting $12.81. - Momentum indicators: Aroon readings (64.29% / 21.43%) favor the recent recovery attempt, but the average directional index (ADX) is 18.04 — below the common 20 threshold — signaling a weak prevailing trend. Bottom line Bitmine is sticking to a clear playbook: keep accumulating ETH, lock most of it into staking for yield, and buy back shares it considers undervalued. That strategy increases exposure to Ethereum’s upside but also concentrates the company’s balance-sheet risk. Investors weighing BMNR get equity-style access to Ethereum without token custody — along with corporate and operational considerations that a pure spot ETH ETF would not carry. Disclosure: This article is for informational purposes and does not constitute investment advice.