Bitmine Stalls at $65 Resistance as BMNR Stock Breaks $60, ETH Holdings Reach $13.4B
BitMine's stock rose 12% to begin the week on a positive note as a result of its aggressive Ethereum accumulation and the resurgence of ...
Quick overview
- BitMine's stock surged 12% to over $60 following the purchase of 179,251 Ethereum tokens worth $820 million.
- The company's total Ethereum holdings now stand at 2.83 million coins, valued at approximately $13.4 billion.
- Despite a challenging September, BitMine's fortunes improved with Ethereum's recovery, turning previous resistance into support.
- BitMine aims to control up to 5% of Ethereum's circulating supply, demonstrating its commitment to long-term accumulation.
BitMine’s stock rose 12% to begin the week on a positive note as a result of its aggressive Ethereum accumulation and the resurgence of the cryptocurrency industry.
A Strong Monday Boost Amid Crypto Tailwinds
BitMine (NASDAQ: BMNR) kicked off the week with an impressive 12% jump, lifting its share price above $60 after announcing the purchase of 179,251 Ethereum tokens worth $820 million.
This addition brought BitMine’s total ETH holdings to 2.83 million coins, now valued at approximately $13.4 billion, reinforcing its status as one of the largest institutional players in the Ethereum ecosystem.
The rally coincided with broader gains in digital assets—Ethereum climbed above $4,700 while Bitcoin broke new records past $126,000, both lending fresh momentum to BMNR’s share price.
Turbulent September Sets the Stage
The upbeat start to October follows a challenging period in late September, when BMNR came under renewed selling pressure after announcing a $365.24 million registered direct offering tied to its crypto holdings.
BMNR Chart Daily – The 50 SMA Has Been Broken
Although the capital raise underscored strong institutional interest, it was overshadowed by a softening cryptocurrency market, which dragged BMNR shares below $40—their lowest in over a month—and under the key 50-day simple moving average (SMA), a bearish signal that unnerved short-term traders.
Details of the Fundraising Deal
The offering saw an institutional investor agree to purchase 5.22 million shares of common stock at $70.00 apiece.
The package also included warrants for up to 10.44 million additional shares with an exercise price of $87.50 per share, exercisable immediately and valid through March 2027.
While the terms appeared attractive on paper, the timing—amid weak crypto sentiment—limited the market’s positive reaction.
Ethereum’s Comeback Lifts BMNR
BMNR’s fortunes remain closely tied to Ethereum’s price action. After tumbling alongside ETH in August, the stock rebounded sharply as the cryptocurrency recovered.
The 50-day SMA that once acted as resistance around the $50-$55 range has now turned into support, providing a base for BMNR’s recent upswing. Currently, buyers are testing a key resistance zone between $65 and $70. A decisive breakout above that level could revive BMNR’s bullish trend.
Strategic Focus on Ethereum Dominance
Despite price volatility, BitMine’s long-term strategy remains firmly anchored to Ethereum accumulation. Under the guidance of Fundstrat’s Tom Lee, the company has steadily built a treasury of 2.83 million ETH, positioning itself as the second-largest public crypto holder after MicroStrategy’s Bitcoin reserves.
Management has made clear its ambition to control up to 5% of Ethereum’s circulating supply, a bold goal that underscores its conviction in ETH’s role as a balance-sheet reserve asset.
To support this effort, BitMine has allocated $635 million in cash for future Ethereum acquisitions, signaling its commitment to expanding its holdings even in periods of market uncertainty.
Outlook: Balancing Growth With Volatility
While Monday’s surge shows that investor appetite remains strong, BMNR’s path ahead will likely mirror Ethereum’s price swings. Continued institutional buying and a breakout above resistance could fuel further gains, though the stock’s volatility will remain high as crypto markets respond to regulatory developments and macroeconomic trends.
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