BitMine BMNR Stock 37th Most Traded in US; Holds 3.2% of ETH Supply

BitMine Immersion Technologies Inc. (NYSE Arca: BMNR) is closely linked to the ETH price. If the Ethereum price rises, the BMNR price will most likely follow. In a press release issued on Monday, BitMine shared a bullish perspective on the cryptocurrency market and Ethereum. The company expects Ethereum to catalyse real-world asset tokenization. Moreover, Tom Lee believes enough time has passed since the October 10 flash crash for the market to get back on track.

BMNR 37th Most Traded Stock in the US; Upside at $40-$100 if ETH Rises

BMNR is the 37th most-traded stock in the United States, according to Fundstrat, as of December 4. Trading volume was clocked at $1.8 billion per day (5-day average). Thomas “Tom” Lee is the founder of Fundstrat.

At press time, BMNR was trading at $35.84, representing a weekly increase of over 17%. It has increased by nearly 360% over the last 12 months. Last week, the Ethereum treasury company aggressively accumulated ETH.

In a Sunday press release, the company noted: “As of December 7th at 4:00 pm ET, the Company’s crypto holdings are comprised of 3,864,951 ETH at $3,139 per ETH (Coinbase), 193 Bitcoin (BTC), $36 million stake in Eightco Holdings (NASDAQ: ORBS) (“moonshots”) and total cash of $1.0 billion.”

Economist Donald Dean noted that BMNR was poised to reach $65.87 if ETH traded at $4,000 at a multiple Net Asset Value (mNAV) of 1.6X.

The mNAV is a go-to metric to measure the value of crypto treasury companies like BitMine and Strategy. It’s the multiple of the ratio of the enterprise value to the crypto net asset value. A value above 1 indicates that the company is more valuable than its crypto holdings. Conversely, a value below 1 indicates the underlying crypto asset holding is more valuable than the company.

Dean provided more forecasted values for BMNR price at a 1.6X mNAV:

• $5,000 ETH = $81.33 BMNR
• $6,000 ETH = $96.80 BMNR

Meanwhile, at a conservative 1X mNAV, Dean projected the following price points for the Bitcoin mining company:

NAV at 1X:

• $4,000 ETH = $41.17 BMNR
• $5,000 ETH = $50.83 BMNR
• $6,000 ETH = $60.50 BMNR

Dean’s choice of the mNAV stems from Bitcoin Treasury company Strategy (NASDAQ: MSTR) trading at that mNAV for a prolonged period. 1.6X can be considered a benchmark value for these treasury companies.

Ethereum price was trading at $3,106 at the time of writing this report. It reflected an 8.5% weekly rise and a 1.4% daily rise. According to market commentator Ted Pillows, strong bids are trained at the $3000 to $3100 zone. Pillows added that if ETH price surges past $3100 with good volume, it could reach the $3700 to $3800 level in a few weeks.

Why BitMine is Buying ETH Aggressively

On December 4th, at the Binance Blockchain Week, Tom Lee presented a hyper bullish case for Ethereum. Lee’s bullish comments came in a week when BitMine bought ETH at an unusually high rate. Presently, BitMine holds 3.2% of the total Ethereum supply, which is two-thirds of its target of 5% total supply.

BitMine’s Monday press release cited Lee: “In the past week, BitMine acquired 138,452 ETH tokens. This is a meaningful increase of 156% compared to the 54,156 weekly pace of 4 weeks ago (the week of Nov 17).”

“Our stepped-up buying activity reflects our confidence that ETH prices should strengthen in the months ahead, given multiple catalysts. The Fusaka upgrade, aka Fulu-Osaka, activated on December 3rd, delivers an array of improvements in scalability, enhanced security, and usability.

The Federal Reserve is taking several key steps in December, including ending quantitative tightening (QT), and is expected to cut interest rates again on December 10th. We are now more than 8 weeks past the October 10th liquidation shock event, a sufficient length of time to allow crypto to trade on forward again fundamentals,” Lee explained.