Bitmine Immersion Technologies ($BMNR) spent $154 million to snap up 71,672 Ethereum (ETH-USD) tokens, a massive increase from the 26,000 tokens acquired the week before. This huge move surprised onlookers because Chairman Tom Lee previously suggested a slowdown in ETH-buying, but Bitmine’s leadership quickly changed course when ETH prices dropped. BMNR stock dropped almost 5% in early trading on the news.
Tom Lee explained in a corporate statement that Bitmine Immersion views the recent pullback of ETH to below $2,200 as an “attractive opportunity,” even as the broader market struggles with surging global energy costs.
Tom Lee Blames Rising Oil Prices
Tom Lee believes that expensive oil is the main reason why the second-largest cryptocurrency is showing sudden weakness. Tom Lee pointed out a strong link between the two completely different markets on social media on Monday morning. Tom Lee noted that the “ETH inverse correlation to oil is the highest ever” because a six-week surge in crude prices directly matches the steady drop in token values.
Rather than worrying about permanent problems inside the blockchain ecosystem, Tom Lee expects a quick turnaround once energy prices cool off. Tom Lee summarized the market outlook online by stating that “Oil reversing = ETH prices recovering.”
Bitmine Immersion Expands its Digital Treasury
This latest spending spree places Bitmine Immersion among an elite group of corporate giants that continue to hoard digital assets during market downturns.
Only a few other large treasury firms, such as Michael Saylor’s Strategy ($MSTR), are actively expanding their crypto reserves right now. With this new addition, Bitmine Immersion now commands nearly 5.28 million Ethereum tokens, which equals about 4.37% of all the available supply in the world. The total value of the cash and crypto reserves at Bitmine Immersion has ballooned to a staggering $12.6 billion.
This massive fortune also includes 202 Bitcoin (BTC-USD), $685 million in cash, and equity stakes in multiple outside businesses.
Is Bitmine Stock a Good Buy?
Turning to TipRanks, BMNR stock has a Moderate Buy consensus rating based on one Buy rating from an analyst assigned in the last three months. The average 12-month BMNR price target sits at $33, implying an upside potential of 73.9%.
