Monday, December 1, 2025

BitMine shares halt slide after $195 million Ethereum purchase

Hyperreal neon crypto scene: BitMine treasury absorbing ETH with blue glow and 3D ETH tokens flowing into a vault.

BitMine finally broke its losing streak after announcing a $195 million purchase of Ethereum, equal to 69,822 ETH, which lifted its stock 10% to $28 on Nov. 24, 2025. For a company that had been under heavy market pressure, the move provided a rare moment of relief amid months of steep declines.

A Bold Bet to Reinforce Its Position in Ethereum

The acquisition raised BitMine’s Ether treasury to 3.63 million tokens, or roughly 3% of ETH’s circulating supply. The company has repeatedly stated its ambition to reach 5% of total supply, a goal meant to strengthen its status as one of the largest institutional ETH holders. Analysts highlighted past accumulation cycles — including a single purchase exceeding 300,000 ETH — as part of a strategy the firm is now firmly doubling down on.

Despite the aggressive buying, BitMine is carrying unrealized losses of about $4 billion following Ethereum’s sharp 40% pullback from August highs. These losses reflect the on-paper erosion of asset value, not realized trades, but they weigh heavily on perceptions of the company’s balance sheet.

Still, BitMine maintains approximately $800 million in uncommitted liquidity, backed by ongoing financing efforts. The firm recently completed a $365.24 million direct placement and holds the potential to unlock an additional $913 million through outstanding warrants, a financial cushion that partly explains its ability to keep acquiring ETH during downturns.

Market reactions remain volatile. In recent months, the stock has fallen up to 43% in a single month and sits nearly 80% below its July peak, bottoming around $24.33. Historically, large ETH purchases have triggered gains from 10% to more than 1,000%, though these rallies were routinely followed by corrections between 11% and 52%.

Institutional participation remains divided. Ark Invest continues to add exposure, while other analysts remain cautious. InvestingPro previously deemed BitMine “significantly overvalued” when trading near $54.21 — a stark contrast with the current accumulation narrative. Meanwhile, Fundstrat co-founder Tom Lee has argued that ETH offers an “asymmetric risk/reward” and may be entering a “supercycle”, a thesis that directly fuels BitMine’s long-term strategy.

BitMine’s $195 million ETH purchase stopped the bleeding but didn’t eliminate deeper structural risks. With heavy concentration in a single asset, substantial unrealized losses, and significant financing mechanisms still pending, the company’s fate now hinges on Ethereum’s next major price cycle — and whether its bold treasury strategy can eventually translate into a sustainable turnaround.

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