BitMine Stock ($BMNR) is proving to be the ultimate proxy for Ethereum (ETH-USD) investors. Over the last five trading days, the company’s share price has moved almost perfectly in line with the digital currency. While Ethereum jumped about 7% to reclaim its spot above $2,100, BitMine’s stock mirrored that move with a 6.5% gain of its own. This tight connection exists because BitMine has transformed its entire business into a massive Ethereum treasury, making the stock act like a mirror for the coin’s daily price swings.
BitMine Builds a Massive Ethereum Mirror
The primary reason BitMine tracks Ethereum so closely is the sheer size of its holdings. The company currently owns 4.5 million Ethereum tokens, which is about 3.76% of every token in existence. This massive treasure chest is worth over $10 billion. When the price of Ethereum goes up by even a small percentage, the total value of BitMine’s company assets increases by hundreds of millions of dollars. This massive backing is why the stock chart and the crypto chart look like twins over the last week.
MAVAN Turns Treasury into Reliable Income
In addition, BitMine is using Ethereum to build a steady business. The company is currently earning $174 million a year just by “staking” its tokens to help run the network. With the launch of the Made in America Validator Network (MAVAN) this year, that income is expected to jump to $259 million. This new way of earning “interest” on its Ethereum adds a layer of value to the stock that goes beyond just the daily price of the coin.
Institutional Buyers Drive Massive Trading Volume
Because the stock mirrors Ethereum so accurately, it has become a favorite among big institutional investors like Cathie Wood’s ARK Invest. BitMine is now the 125th most-traded stock in the U.S., with about $1 billion in shares changing hands every single day. This high volume makes it easy for large funds to move in and out of the stock whenever Ethereum’s price shifts.
Is BitMine Stock a Good Buy?
Turning to TipRanks, BMNR stock has a Moderate Buy consensus rating based on two Buy ratings from analysts assigned in the last three months. The average 12-month BMNR price target sits at $34.50, implying an upside potential of 68%.
