BitMine Doubles Down on ETH, Acquiring $19M in New Holdings Amid Aggressive Share Buyback

BitMine Immersion Technologies (BMNR) continues to intensify its accumulation of Ether (ETH), purchasing an additional 10,399 units last week for a total estimated value of $19.1 million based on an average price of approximately $1,840 per unit.

The company has now acquired over $173 million worth of ETH, with its overall reserve totaling 5.8 million units - representing 4.8% of the circulating supply and 96% of its long-term target.

This significant allocation to Ether is part of a broader strategy that also includes an aggressive share buyback program. Over the past week alone, BMNR purchased 4.5 million of its own shares under its $4 billion buyback authorization - bringing the total number of shares repurchased since July 1st to 16.1 million.

Despite this significant reduction in liquidity, BMNR's chairman Tom Lee emphasizes that recent macroeconomic correlations between Ether and traditional stock indices support his aggressive allocation strategy. According to Lee, 'in July, ETH outperformed the Nasdaq 100 by 2,500 basis points (or 25 percentage points)'.

Lee also highlights a historical trend where BitMine's stock price tends to outperform Ether in the following month after notable monthly ETH outperformance - and he notes that this phenomenon preceded an ETH rise from $2,375 to over $4,000 before the end of August last year.