BitMine Grabs Nearly 5% of Ethereum: Is It a Smart Investment?

BitMine Immersion Technologies has acquired nearly 5% of all Ethereum in circulation after massive buying over the past 30 days. The company plans to reach 5% ownership by the end of the year.

The market capitalization of BitMine is roughly equal to the value of its Ethereum holdings, indicating a tiny premium for investors. However, this premium is not enough to justify buying, especially considering the stock's decline of 54% over the past 12 months.

Some argue that investing in digital asset treasury companies like BitMine can be an interesting proxy for exposure to Ethereum when direct investment is not possible. Nevertheless, the author remains skeptical about the business model of these companies, suggesting it only works during bull markets and breaks down otherwise.