ETH

Ethereum

Crypto derivatives market faces $428M liquidations in 24 hours, with Bybit BTC trade leading at $13M. Read original article on coinlineup.com

Ethereum keeps finding new ways to pull in serious capital, and this time the shift is coming from product design rather than protocol upgrades. BlackRock has quietly taken a different route with its Ethereum ETF strategy, and the implications could be much larger than they first...

Summary Bitmine holds 3.86 million ETH, targeting 5% network ownership, converting its treasury into recurring MAVAN staking income. The current staking yield of ~2.9% generates roughly $400 million annually, underpinning FY25 EPS expectations of $13.39 per share. Accelerated accumulation, 138,452 ETH in one week, creates a tightening supply dynamic that may exert upward pressure on Ethereum prices. Tokenization growth from institutions like BlackRock and Franklin Templeton boosts Ethereum demand, enhancing BMNR's value capture as a major validator. Extreme concentration in ETH and a depressed ETH/BTC ratio pose valuation risks if Ethereum continues underperforming Bitcoin structurally. Investment Thesis Bitmine Immersion's ( BMNR ) edge comes from its massive Ethereum treasury and the yield-generating MAVAN staking engine. With 3.86 million ETH, aiming for 5% of the network, the company converts its holdings into recurring income rather than sitting passively on crypto beta. Staking rewards create a self-feeding loop as more ETH produces more yield, which compounds treasury growth without added dilution. Since my last coverage, BMNR is up 24%, and as tokenization expands and ETH demand rises, Bitmine's validator scale positions BMNR for outsized operating leverage and meaningful rerating in the short term. The MAVAN Yield and Ethereum Treasury Model For me, Bitmine operates a model that makes it different from a standard passive investment. The main factor here is the magnitude of Bitmine's Ethereum ( ETH-USD ) accumulation combined with the cash-generating Proof-of-Stake (PoS) network. As of December 08, Bitmine holds over 3.86 million ETH tokens, and this is ~2.9% of the entire Ethereum network. As the street knows, Bitmine's management has a focus to increase this stake to 5% under a plan called The Alchemy of 5% . Here, I find the shift from passive holding to active network involvement is a massive catalyst. Against Bitcoin (BTC-USD), which functions mainly as a store of value, Ethereum operates as a PoS blockchain. So, owning ETH provides the right to validate transactions and earn yield (MAVAN). At the current holdings level, Bitmine projects a 2.9% yield on its staked assets, and it leads to ~$400 million in income that serves as a hard base for revenue and BMNR stock price upside. DEC 25-Deck I see that the EPS for FY25 is at $13.39/share based on staking rewards derived from the treasury. This structure shifts Bitmine into a cash-flow-positive infrastructure instead of a mere proxy for crypto prices. By holding a large share of the network, Bitmine secures a recurring topline that scales in line with its treasury's size and the transaction fees paid by network users. Thus, the 5% target is a supply shock process. By locking up 5% of the ETH supply, Bitmine removes these tokens from circulating in the market, which reduces the available supply while demand remains constant/increases. So, it creates a price pressure on the upside. Bitmine acquired 138,452 ETH in one week; the buying is at a pace of 156% higher than prior averages. Thus, the stacking acceleration in the accumulation phase actively intensifies the treasury model. Further, there is a shift toward tokenization by major Wall Street giants like BlackRock ( BLK ) and Franklin Templeton (they are building projects on ETH). As traditional assets (equities, bonds, and real estate) move to the blockchain, the demand for block space on Ethereum may increase. Every transaction for a tokenized asset requires ETH to pay for gas fees. Bitmine, as a principal validator and holder, captures value from this increased network activity. Thus, I see a compounding effect in this. How? As Bitmine earns staking rewards, those rewards bring in more ETH. So, if Bitmine retains these rewards, the treasury grows organically without any further CapEx and share dilution. This creates a loop where the asset base expands and derives more yield that further expands the asset base. This Digital Asset Treasury ((DAT)) concept makes Bitmine the second-largest DAT by size and liquidity, only behind Strategy ( MSTR ). I also consider the valuation implications regarding the ETH/BTC ratio. This suggests an implied fair value for ETH between $12,000 and $22,000 if the ratio reverts to its 8-year average or 2021 highs. If Ethereum prices reach these levels, the value of Bitmine's 3.86 million tokens would expand the balance sheet to between $46 billion and $85 billion. The stock price is currently trading at ~$39 and may likely have to do a massive repricing to reflect this book value. DEC 25-Deck Overall, the specific combination of massive scale accumulation, yield generation through staking, and the organic compounding of the asset base provides a solid stock price floor. It creates a business model in which Bitmine is a big beneficiary of ETH's usage. As long as the ETH network processes transactions and Bitmine maintains its validation nodes, it will derive income. This internal cash flow separates Bitmine from entities like Strategy that hold non-cash-yielding assets, and it provides possibilities of BMNR stock price jumps. Divergence Risk in the ETH/BTC Ratio I see a big risk for Bitmine Immersion Technologies in its extreme concentration in Ethereum and the continued weakness of the ETH/BTC ratio. The bullish case depends on Ethereum catching up to Bitcoin. It is a severe divergence that risks Bitmine stock's valuation. The entire 5% plan is based on ETH maintaining and increasing its value against BTC. The ETH/BTC ratio dropped to 0.036, which is way below the 8-year average of 0.04790 and 2021's high of 0.08727. Data by YCharts I can rationalize this price drop with multiple explanations, like crypto winter and AI stocks capturing street attention. But this dropping ratio indicates that the market currently favors Bitcoin as the primary institutional asset over Ethereum. If this structural repricing of Ethereum vs. Bitcoin becomes permanent, then Bitmine may be holding a depreciating asset relative to the crypto market benchmark. I see that Bitmine has allocated $13.2 billion almost entirely to Ethereum (3.86 million tokens) with a minor Bitcoin position (193 BTC). This lack of diversification creates singular asset risk for Bitmine. If Bitcoin makes itself the sole collateral/digital gold and Ethereum faces competition from faster/cheaper blockchains (like Solana), the management's expected 'catch-up' trade may never materialize. Further, the Moonshots portfolio is an additional risk. While small relative to the ETH stack ($36 million in Eightco/ORBS), it indicates a risk-on appetite that might be in line with conservative treasury management. The core issue here is that Bitmine functions like a leveraged bet on Ethereum adoption. Similar to Strategy, buying the dip with corporate leverage is currently underperforming and creates solvency risks if the ETH price continues to stagnate/decline, as debt service obligations will remain mostly fixed. Moreover, the narrative of tokenization drives future Ethereum value, but this is still a speculation. If the demand for Ethereum block space may not scale as aggressively as Bitmine projects, then the supply-side accumulation by Bitmine is enough to drive price appreciation alone. I also detect a disadvantage in the DAT rankings, as Strategy and Bitmine together account for over 92% of DAT trading volume. However, MSTR focuses on Bitcoin, which has clear regulatory clarity as a commodity. Ethereum's status is more complex, and its underperformance points to the fact that institutional capital currently prefers the safety of Bitcoin. Bitmine is fighting against the tide of institutional flow that is currently concentrated in Bitcoin ETFs and related proxies. If the so-called '4-year cycle' breaks to the downside, then Bitmine lacks a safety net. The dependence on historical patterns (halving cycles and election cycles) to predict future price action is full of danger. If Ethereum fails to regain its lead against Bitcoin, Bitmine's book value will suffer and possibly compress BMNR stock's multiple. DEC 25-Deck Takeaway Bitmine's sheer ETH scale and yield engine turn it from a crypto proxy into a cash-producing infrastructure play. Its compounding treasury, validator income, and push toward 5% network ownership create durable cash flow and asymmetric upside, offering investors a rare blend of growth, scarcity, and network-driven value expansion.

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Ethereum gained between 97% and 147% after ETH price flipped the 50-week MA into support. A similar scenario is unfolding this week.