BitMine’s $1 Billion Stock Buyback

A Digital Asset Powerhouse Faces Market Discount

BitMine currently holds more than 625,000 ETH, valued at over $2.3 billion, along with 192 BTC and $401 million in unallocated cash. These holdings bring its total liquid assets close to $2.8 billion, placing BitMine among the top corporate holders of digital assets worldwide.

Yet despite this war chest, BitMine’s stock has been trading at a persistent discount to its net asset value (NAV) of $22.76 per share.
The buyback initiative aims to bridge the gap and demonstrate confidence in long-term fundamentals.

According to the company, the move also aligns with its broader goal of capturing 5% of Ethereum’s total supply, a strategy it has dubbed “the alchemy of 5%.”

Tom Lee called the buyback “a high-conviction decision,” pointing out that in moments of dislocation between price and value, repurchasing equity can generate more upside than direct asset accumulation. He noted that BitMine is not retreating from its ETH strategy but is enhancing it with a capital efficiency layer designed to unlock shareholder value.

The program has no fixed expiration and gives BitMine discretion to buy back stock in the open market or via negotiated deals, depending on pricing conditions.

Market Reaction and Investor Sentiment

Markets responded swiftly to the announcement. BitMine shares dropped 8.9% within 24 hours, closing around $32, a sharp decline from their early July high of $135. That peak had followed news of its ETH treasury ambitions and support from heavyweight investors, which sent the stock on a meteoric 3,000% rally.

Some analysts interpret the dip as a healthy correction after an overheated rally. Others note that the stock’s volatility reflects investor uncertainty over BitMine’s shifting capital priorities. Not all shareholders were pleased. A segment of investors, especially those aligned with BitMine’s Ethereum thesis, view the buyback as a diversion from ETH accumulation.

According to Bitedge analysts, the sharp drop may also have been partially technical. Several tranches of newly issued shares became tradable shortly after the buyback news, injecting additional liquidity and pressure on the price.

Still, the broader market has not lost confidence in BitMine’s long-term thesis. Even with the correction, the company remains one of the most watched crypto treasury plays in public markets.

The Ethereum Thesis: Staking and Institutional Adoption

BitMine is betting big on Ethereum not just as a store of value, but as the backbone of future decentralized infrastructure. It is among the first public companies to treat ETH similarly to how MicroStrategy treats Bitcoin—allocating long-term capital into the asset, building up reserves, and planning to generate yield through staking.

The company has begun staking portions of its ETH holdings to earn validator rewards, adding a revenue-generating component to its treasury. This contrasts with the approach of other corporate treasuries that simply hold digital assets passively.

Major institutional investors have taken notice. Peter Thiel’s Founders Fund and Cathie Wood’s ARK Invest both took positions in BitMine earlier this summer. Thiel’s reported 9.1% stake sent the stock soaring on the day of the disclosure, further legitimizing BitMine’s Ethereum-forward approach.

In parallel, other firms are embracing similar strategies. SharpLink Gaming recently disclosed ETH holdings of over 438,000 ETH, with newer players like The Ether Machine, Bit Digital, and GameSquare joining the Ethereum treasury cohort. Together, these firms are shaping what some have called a “second wave” of corporate crypto balance sheets.

The company has appointed Cantor Fitzgerald as its agent for executing repurchases under SEC Rule 10b‑18, which allows for flexible open-market buying. There is no fixed timetable for the repurchase, and BitMine has not committed to using the full $1 billion; only that it sees share repurchases as accretive at current valuation levels.

The Path to 5% Ethereum Ownership

With Ethereum’s total supply near 120 million, BitMine’s 625,000 ETH reserve puts it just past 0.5% ownership. Its long-term target of 5% ownership would require nearly 6 million ETH, suggesting that the current buyback does not signal a slowdown but rather a recalibration.

If ETH prices continue rising and BitMine resumes accumulation after stabilizing its stock price, the race for Ethereum supply could tighten, especially as more firms move to stake and lock up large volumes of ETH for yield.

Bottom line: BitMine’s $1 billion buyback is a signal of intent. The firm is charting a path between capital market efficiency and Ethereum dominance. If it pulls it off, it won’t just be a crypto treasury pioneer, but may become the prototype for how future public companies manage crypto-native balance sheets.