BitMine Stock Poised for Surge as Ethereum Buying Process Nears Completion
BitMine's stock has faced a soft week, dipping to $26.43, below its recent high of $28.76. However, this decline may be a calm before the storm, with a potential larger move on the horizon.
The company's Ethereum buying process is nearing completion, with over 6 million tokens acquired and 5.1 million tokens staked. This will mark the end of the pace of dilution that has seen its outstanding shares jump in the last 15 months.
As Tom Lee estimates, the annualized staking revenue for BitMine is over $358 million, and when all tokens are staked, the revenue is expected to exceed $424 million. This is significant, given BitMine's business model, which relies heavily on staking revenue.
The Ethereum price may also surge in October, with Citigroup hiking its target to $3,028 from $2,240. The company noted that flows into the crypto market will continue, albeit at a slower pace, driven by money managers gradually allocating cash to $ETH and other assets.