Tom Lee’s Big Ethereum Bet Backfires as BMNR and BMNP Plunge

BitMine and BMNP Stocks Have Been in a Steep Sell-Off

The recently launched BitMine Immersion 9.5% Series A Perpetual Preferred Stock (BMNP) has dropped in the last 12 consecutive days. It ended the week at $81, down from record high of $92.97.

Investors have dumped these securities amid concerns that the parent companies may be forced to further dilute existing shareholders or sell portions of their cryptocurrency holdings to fund dividend payments.

BitMine is in a better position than Strategy. For one, it has already bought 5.6 million $ETH coins and has about 400k coins to buy. If the trend continues, it will complete its acquisition in the next few months.

BitMine is also making money from its Ethereum holdings through staking program, which is earning about 3% in annual return.

Ethereum Price is at Risk of Further Downside

Lee’s justification for Ethereum holdings is also as its fundamentals deteriorate. Recent data shows that its network fees have plunged to just $90 million this year from the $523 million it made last year.

Its total value locked in the decentralized finance industry has plunged by over 60% from its peak last year, while the amount of tokenized assets has fallen by over 5% in the last 30 days. has also waned, with outflows rising to over $1 billion this year.

Technicals also suggest that $ETH price may drop further in the near term. It has remained below the 50-day moving average and formed an inverted cup-and-handle pattern. These technicals suggest that it may drop to as low as $1,000 in the near term, affecting BitMine’s holdings.

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