BitMine Immersion Technologies (BMNR), a crypto investment firm, announced a $1 billion stock repurchase program on July 29. The goal is to improve value for current shareholders, especially if the stock price drops below the value of the company’s assets. This program is open-ended, so the company can buy shares over time whenever it feels it’s the right moment.
Strong ETH and Cash Reserves
As of July 28, BitMine Immersion Technologies holds 625,000 ETH, valued at $3,755 per ETH, totaling approximately $2.35 billion. The company also owns 192 BTC, valued at $118,021 per coin, worth over $22 million.
Altogether, their crypto and cash assets total $2.77 billion. The company has 121.7 million shares, making its net asset value per share (NAV) around $22.76. Right now, the stock is trading below that value, which is one reason they might begin buying back shares.
As of July 29, the stock price of BMNR is trading at $31.20, down 11.14% or $3.91 for the day.
The Bigger Picture: 5% of ETH Supply
BitMine has a bold goal. It wants to own 5% of all ETH in circulation, a mission they call “the alchemy of 5%”. Recently, the company added 58,224 ETH worth $225 million, showing its aggressive ETH accumulation.
If market conditions change, the company might sell some ETH to fund the buybacks. The chairman, Thomas Lee, believes that buying their own stock could be the best way to use company funds at certain times.
Also Read: BitMine Stock Begins Options Trading on NYSE
