Bitmine Continues to Accumulate Ethereum Despite Stock Decline
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Bitmine revealed on December 14 that it owns a total of 3,967,210 ether (ETH), valued at approximately $12.2 billion based on the price of $3,074 per ETH.
According to the report, the company also holds 193 bitcoin, an equity stake worth $38 million in Eightco Holdings, and $1 billion in cash, bringing its total holdings in crypto and cash to around $13.2 billion. As it stands, this makes Bitmine the largest corporate holder of Ethereum, owning more than 3.2% of the total circulating ETH supply.
To this end, the firm has stated its goal of acquiring 5% of the ETH supply is still ongoing and without a specific timeline, as an extra 102k ETH was added last week.
Performance of Bitmine’s Stock and Market Capitalization
Despite the growing crypto assets, Bitmine’s stock performance has shown volatility. As of December 15, Bitmine’s stock closed at $34.74, which is slightly lower than the previous day.
The company’s market capitalization stands at about $14.8 billion. Over the past 52 weeks, the stock price has fluctuated between $3.92 and $161, and its average daily trading volume is around 47 million shares.
In 2023, Bitmine’s stock has increased by more than 396%, and it is up about 222% from the previous year, even though it has seen a significant 38% decline in the past three months.
Impact of Crypto Holdings on Bitmine’s Valuation
An extract from the report shows that Bitmine’s valuation is closely tied to its cryptocurrency holdings, especially Ethereum. However, the price of both Bitcoin and Ethereum has fallen in recent months, but the company’s stock has still been impacted more by its treasury rather than just the spot price of crypto.
As of December 15, the firm’s net asset value (NAV) is estimated to be around $13.44 billion. As it stands, little has been said about its debt; meanwhile, the company’s enterprise value is nearly $13.79 billion.
To this end, this suggests that the market views Bitmine’s stock value as nearly equal to its crypto and cash holdings, meaning its future performance is largely dependent on Ethereum price changes, new Ethereum issuance, and the company’s ongoing expansion of its treasury.
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