Cathie Wood Is Buying Shares of This Little-Known Ethereum Treasury Company. Should You?
BitMine recently shifted its focus to Ethereum and has already built holdings worth more than $2 billion. The company's goal is to acquire 5% of all ETH in circulation. Ark Invest has been adding millions of BitMine shares across its exchange-traded funds including its flagship Ark Innovation ETF (ARKK), showing its confidence in BMNR.
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For investors watching Cathie Wood's next big play, BitMine could be a unique opportunity in the growing Ethereum treasury market.
About BitMine Stock
Based in Las Vegas, BitMine Immersion Technologies is a tiny crypto firm that has suddenly grabbed headlines. The company started as a Bitcoin (BTCUSD) miner and focuses on the accumulation of crypto for long-term investment using mining and capital raises to build its holdings.
In mid-2025, BitMine announced a major pivot: a $250 million private stock placement at $4.50 per share to finance an 'Ethereum treasury strategy.' Management says the proceeds will be used to buy Ethereum and make ETH the company's primary treasury reserve asset.
Following the announcement, BitMine's stock went on a meteoric run. In early July, shares briefly spiked over 3,000%, touching $161 at the peak as investors embraced the company's bold Ethereum treasury pivot. Despite the rapid rise and sharp swings, the stock remains up roughly 385% year to date, underscoring the speculative buzz surrounding BitMine's dramatic strategy shift.
Valuation wise, BMNR's looks expensive at the moment. The price-sales ratio is 40.5x, considerably higher than the sector median of 3x, indicating a very expensive stock compared to its peers.
Cathie Wood Bets Big on Bitmine
In a recent move, Cathie Wood's Ark Invest has been aggressively buying BitMine stock. Over several trading days in late July and early August, ARK funds accumulated hundreds of thousands of BMNR shares. CoinDesk reports that ARK's Innovation and Next Gen Internet ETFs (ARKW) bought about 477,498 shares on July 30 alone, following 529,366 the day before, and then about 540,712 more shares on July 31, roughly $15 million to $17 million each day.
How Is BitMine Doing Financially?
Bitmines' financial performance has been mixed lately. In its latest quarter, BitMine's revenue was roughly $2.05 million, mostly from mining and equipment sales, up 68% year-over-year. Gross margins are thin and expenses are high, driven by depreciation, compensation, and operational costs. The net loss per share was $0.31 per share.
As of early August, BitMine's treasury held 833,000 ETH, valued above $2.9 billion. The company said this officially made it the largest Ethereum treasury in th world.
What Do Analysts Think About BitMine Stock?
BitMine recently received a 'Strong Buy' rating from the sole Wall Street analyst tracked by Barchart. The analyst has set a mean price target of $60, suggesting the stock could potentially gain 60% from its current level.
The Bottom Line
Although ARK's interest has drawn attention to this stock, and Wood's firm is known for both big winners and high-risk plays, it doesn't change the fundamentals. BitMine remains a very small company with limited revenue. Its balance sheet is dominated by crypto holdings, which fluctuate in value with Ethereum and Bitcoin prices, and it continues to report ongoing mining expenses.
Overall, it's a risky bet for me, but those with a higher risk appetite might welcome a chance to bet on this one.
On the date of publication, Nauman Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
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