Bitmine Downgraded Amid Decreasing Ethereum Mining Revenue

Bitmine Immersion Technologies, Inc., a company that had seen its shares surge by 77% since July, when Ethereum hit a low around $1,750, is facing a downgrade. The analyst who made the upgrade in July has now changed their opinion, citing increased risk and better opportunities elsewhere.

The main reason for the downgrade is the significant decrease in Ethereum mining revenue for Bitmine. The company was adding roughly 10 times less ETH per week than it did a year ago. Additionally, it had already cut back on buybacks started in July and August, during Ethereum's weakest months this year.

Another factor that contributed to the downgrade is the mismatch between the preferred coupons paid by Bitmine in weekly cash installments, which run at 9.5% per annum, and the staking rewards paid in ETH. This discrepancy becomes more pronounced when Ethereum prices fall.