Bitmine adds 10,399 ETH units, BMNR shares fall

Bitmine increased its holdings of 10,399 ETH units and repurchased 4.5 million shares, but BMNR's share price fell to US$17 due to unrealized losses.

Bitmine Immersion Technologies recently increased its holdings of 10,399 Ethereum units and included them in treasury, while repurchasing 4.5 million shares. However, as investors continued to focus on its widening unrealized losses, BMNR's share price fell to near $17.

Core Summary

Bitmine purchased 10,399 ETH units, bringing its total position to 5,797,813 ETH units. The company currently controls approximately 4.8% of the total supply of Ethereum. In the third consecutive week of repurchase operations, Bitmine bought back 4.5 million shares of BMNR shares. BMNR is trading at around $17.06, with technical indicators showing weak trend strength.

Bitmine has a position of nearly 5.8 million Ethereum units

Bitmine said it has purchased another 10,399 ETH units in the past week, continuing the accumulation strategy it started last year. The purchase increased its total position to 5,797,813 ETH units, equivalent to approximately 4.8% of Ethereum's circulating supply. The previous week, Bitmine purchased 9,946 ETH units. These two transactions allowed the company to increase the number of ETH in the treasury by more than 20,000 in two weeks.

Chairman Tom Lee linked this continued accumulation to Ethereum's recent performance relative to U.S. technology stocks. He said that Ethereum outperformed the Nasdaq 100 Index by 25% in July, the largest lead since July 2025. "This is the largest excess performance since July 2025, and we believe it reflects the strengthening of cryptocurrency fundamentals." Lee pointed out that Ethereum climbed from $2,375 in July 2025 to $4,057 at the end of next month. However, past performance does not guarantee that Ethereum or BMNR will follow the same trend again.

Despite the overall downturn in the cryptocurrency market and book losses on its positions, Bitmine still adheres to its accumulation strategy. DropsTab estimates the company's unrealized loss on its Ethereum position at approximately $8.8 billion.

Pledging ETH may bring in annual revenue of US$247 million

Bitmine has also pledged most of the Ethereum treasury. The company reported that 4,917,189 ETH units were in pledge status, accounting for approximately 85% of its total positions. Based on current valuations, the value of the pledged position is approximately US$9.2 billion. Bitmine expects this to generate approximately $247 million in pledge revenue annually. Pledge provides the company with income denominated in ETH while retaining assets on the balance sheet. However, this revenue may fluctuate with Ethereum pledge yields, verifier performance and ETH market value.

This strategy also means that BMNR investors face multiple superimposed risks, including Ethereum price fluctuations, the company's cost base, dilution from capital raising, and the operational risks associated with such a large-scale pledge. For U.S. investors, BMNR provides a way to gain exposure to the Ethereum stock market without directly holding tokens. However, unlike the spot Ethereum ETF, this stock also carries risks in corporate management, financing and capital allocation.

BMNR repurchase enters its third week

Bitmine has repurchased 4.5 million shares of common stock in the past week, marking the third consecutive week that its repurchase plan has been implemented. So far, the company has purchased more than 16 million shares. Management said it considers BMNR attractive relative to its assets and long-term Ethereum strategy. Share buybacks reduce the number of shares outstanding when cancelled, potentially increasing each remaining shareholder's proportionate ownership of the company's assets. The impact depends on the repurchase price, the source of funding and whether new share issues offset the reduction.

Lee believes that historically, after Ethereum's monthly performance was stronger than the Invesco QQQ Trust, BMNR often outperformed Ethereum the next month. This relationship is merely an observation by the company rather than a guarantee of future returns. Repurchase may provide some support for BMNR, but investors have not responded positively to the latest Ethereum purchase and repurchase announcements.

BMNR shares face resistance around $17.15

On August 3, BMNR traded at approximately $17.06, down approximately 1.3% on the daily chart. The stock hit an intraday high of $17.23 and fell as low as $16.63. BMNR prices are testing the 61.8% Fibonacci retracement level of $17.15, which constitutes direct resistance. If the daily closing price is above this level, it may push BMNR to challenge $18.49 (corresponding to the 50% retracement level). The next resistance is at $19.82, and a stronger recovery breaking through that level could shift the focus to $21.48, but shares need more momentum and volume to maintain such gains.

BMNR remains above the uptrend line that has been formed since the June low of around US$12.81. This structure suggests that the short-term rally has not yet failed, but it is difficult for stock prices to gather momentum above $17. The Aroon indicator read 64.29% and 21.43%, leaning towards near-term attempts to rebound. However, the average trend index (ADX) was 18.04, which is below the commonly watched threshold of 20, indicating that the current trend remains weak.

If blocked at US$17.15, BMNR may fall back to the uptrend line near US$16. Stronger support is at the 78.6% Fibonacci level of $15.24. A clear break below this area would weaken the rebound structure and increase the risk of testing $12.81 again.