Bitmine Immersion: Capitalizing On Renewed Crypto Enthusiasm, Likely To End Badly

Summary Bitmine Immersion Technologies is capitalizing on renewed crypto enthusiasm, especially Bitcoin and Ethereum price surges. Bitmine Immersion recently announced a $250 million PIPE deal to acquire Ethereum, signaling a major strategic pivot. Despite a 75% stock price pullback from July highs, I view BMNR stock as egregiously overvalued at current levels. My rating reflects concerns about valuation and dilution from a fresh $2 billion ATM. BitMine Immersion Technologies Overview With Bitcoin ( BTC-USD ) fresh off yet another new all-time price high and market sentiment about Ethereum ( ETH-USD ) rapidly improving, there has been a surge in public companies looking to benefit from the recent rise in digital asset prices. One such company is BitMine Immersion Technologies ( BMNR ). That company has made a series of headlines in recent weeks and enjoyed a massive stock price moonshot. Even after a sizable pullback, shares are currently up over 800% over the last month. Data by YCharts In this piece, we’ll briefly look at BitMine’s operations, the recent capital raise strategy, and what I view to be an egregiously overvalued stock even after a 75% pullback from an early-July high of $161 per share. BitMine Immersion Operations ‘A Bitcoin Network Company’ (Bitminetech.io) Prior to pivoting to an Ethereum treasury strategy in June, BitMine Immersion considered itself a Bitcoin company. In fact, the company’s website still states that BitMine is “A Bitcoin Network Company” and lists Next-Gen Mining, Mining-as-a-Service, and Bitcoin Treasury Consulting as primary operations for its business. BitMine The picture above is from an investor deck dated June 2025 ; the slide presenting BitMine’s strategic vision made no mention of Ethereum as a core focus for the company and stated support for mass adoption of Bitcoin. To be sure, BitMine’s operations have been reliant on BTC rather than ETH: Data by YCharts During the quarter-ended May 2025, BitMine generated $2.05 million in top line revenue for a gross profit of $490k. While the last quarter was indeed BitMine’s best quarter in the last 5 years from a revenue generation standpoint, this is not a business that has ever generated positive net income on an annual basis. BitMine Revenue By Segment (BitMine 10-Q) Breaking the revenue out shows more than half of the company’s revenue coming from asset leasing in the quarter. This is a new segment for BitMine and the revenue from leasing is entirely reliant on one client, KULR Technology Group, which is leasing 3,000 ASICs owned by BitMine. KULR is also the only client in BitMine’s custody business. Thus, one client accounted for at least 54% of BitMine’s revenue last quarter. Through two different lease agreements in March and May, KULR committed to pay BitMine $4 million through December. The company has an advanced payment of $1.4 million from KULR. Looking at the balance sheet through May, we see a company that had very little in the way of shareholder equity for a $31 million market cap at the end of the month: Balance Sheet (BitMine 10-Q) BitMine had less than $1.5 million in cash and a $1.9 million loan payable to a company owned by BitMine’s CEO. Subsequent to the filing, that loan has been satisfied. Of the company’s $8.3 million in total assets, $3.1 million of BitMine’s Property and Equipment was classified as ‘not in service.’ Those assets were made up of immersion containers, immersion fluid and 15 transformers. In my view, these end of May numbers show a capital raise was clearly needed. And the company has done just that in a major way. Share Offering, PIPE, and ATM June 6th Prospectus (BitMine) Early in June, the company sold 2,250,000 shares at $8.00 per share. Net proceeds from that sale were $16,150,000 million with the expressed purpose of purchasing Bitcoin. However, just a few weeks after raising over $16 million to buy BTC, BitMine did a $250 million Private Investment in Public Equity agreement to build an Ethereum Treasury. Notably included in that PIPE were Pantera, Kraken, Galaxy Digital ( GLXY ), Grayscale-parent Digital Currency Group, and Fundstrat’s Tom Lee. Lee is also a notable CNBC contributor as well as the Chairman of BitMine’s board of directors. The pricing on that PIPE was $4.50 per share – a 43% discount to the pricing of BitMine’s share offering earlier in the month. We also now know that Peter Thiel was included in the PIPE as well and currently owns 9.1% of the company. As far as I can tell, there is no information yet pertaining to when those $4.50 PIPE shares will unlock. ETH Treasury Rankings (Strategic eth reserve.xyz) What we do know is BitMine disclosed a $2 billion ATM on July 9th and has seemingly already put that to significant work since the company now claims to hold $500 million in ETH . For all intents and purposes, BMNR is now an ETH-proxy stock with very little relation to the Bitcoin mining operations that it reported in its latest 10-Q. BMNR Stock Valuation This all brings us to the valuation. At July 14th share prices, $250 million in additional capital from the ATM likely required issuing somewhere between 4 and 6 million new common shares. If we split the difference and call it 5 million shares, we can reasonably assume there are now at least 65 million BNMR common shares outstanding after the 2.3 million raised in early June and the 55.6 million from the PIPE. At a July 16th share price close of $44.8, I estimate BitMine Immersion now has a market capitalization of $2.9 billion and ETH holdings of $500 million. Closing Thoughts In no world does this valuation for BNMR make sense. The company closed July 16th trading at nearly 6x the liquidation value of the claimed ETH assets. And this doesn’t even get into the optics of this whole operation – which I personally find to be concerning. At a nano-cap valuation, the company raised a quarter million dollars from well-known crypto bulls who have large platforms. Those shares immediately exploded in value due, in part, to the notoriety of the investors who took part in the PIPE as well as the market’s current exuberance for anything that mentions a digital asset ‘treasury’ in a press release. BitMine immediately announced a $2 billion ATM and will presumably continue to utilize a cash raising instrument that it never would have been able to attain a month ago. There is no meaningful business operation that would justify this share price and the stock is wildly overvalued relative to the assets it holds. I wouldn’t walk, I’d run from BMNR.

Source: Seeking Alpha