BMNR Stock Forecast as BitMine Ethereum Buying Spree Continues
Key Insights
- BMNR stock rose as BitMine continued accumulating Ethereum.
- The company now holds over 4.73 million ETH tokens.
- BitMine has formed a falling wedge and a double-bottom pattern.
The BMNR stock price rose by over 4% on Monday as Ethereum rebounded and as Thomas Lee continued his Ethereum accumulation. BitMine rose to $20.4, up slightly from this month’s low of $17.8.
BitMine Continues to Accumulate Ethereum
Tom Lee’s BitMine continued its Ethereum accumulation as the price remained in a bear market. In a statement, the company said that it acquired 71,252 coins last week, the biggest purchase this year. It had bought 71,179 coins in the previous week.
The company has bought 258,495 coins in the past 30 days, bringing its total holdings to 4.732 million, which are now valued at $10.14 billion. It holds 3.91% of the supply, suggesting it may cross 4% this month.
Unlike other treasury companies that have an open-ended buying strategy, BitMine has set a goal of buying 5% of Ethereum in circulation. If the trend continues, the company will get to its target as soon as this month.
BitMine also aims to generate an income from its Ethereum holdings by staking them. It recently launched the Made in America Validator Network (MAVAN), which it is using to stake the coin.
It has already staked 3.3 million tokens worth over $7.1 billion and is now generating about 3% annual return. Over time, the company aims to generate annual staking revenue of over $400 million, which it will use to repurchase its stock and make other investments.
In addition to staking, the company aims to invest its cash balances in government bonds. It closed the week with over $864 million in cash.
BitMine has also invested in other companies, including $200 million in Beast Industries and $92 million in Eightco, which owns Worldcoin tokens.
BitMine Stock Rose as Ethereum Price Rebounded
In addition to its ETH purchases, the BMNR stock price rebounded alongside Ethereum’s recovery. Data shows that ETH price rose by over 5% in the last 24 hours to $2,145. The rally mirrored that of other coins, including Bitcoin, which jumped to $70,000.
The rally is mostly due to the ongoing hope that the US and Iran will reach an agreement and declare a ceasefire as early as this week.
Reports from media companies like Axios and Reuters show that the two sides are nearing a deal for a 50-day ceasefire that could see the Strait of Hormuz reopen.
Such a deal would be highly bullish for Ethereum and other altcoins because of the impact on the energy market. Crude oil and gas would drop, raising the possibility that the Federal Reserve will cut interest rates.
Still, the main risk for the Ethereum price is that the ongoing rebound is a dead-cat bounce, which is a situation where an asset rises briefly and then resumes the downtrend.
The other risk is that Ethereum demand remains substantially weak. For example, data shows that spot Ethereum ETFs have shed over $72 million in assets this month. It is the sixth consecutive month of outflows from the funds.
BMNR Stock Price Technical Analysis
The daily timeframe chart shows that the BitMine stock has rebounded in the past few days. It formed a double-bottom pattern at $18.25 and a neckline at $23.90, its highest point in March this year. A double-bottom is one of the most common bullish reversal sign in technical analysis.
The stock has also formed a giant falling wedge pattern, composed of two descending, converging trendlines. It has already moved above the upper side of this pattern.
BitMine stock price chart | Source: TradingView
Therefore, the stock will likely continue rising as investors target the initial $23.90 target. A move above that price will point to more gains, potentially to the key resistance level at $34.20, its highest point in January this year.
A crash below the key support level at $18.24 will invalidate the bullish BitMine stock price forecast.
The post BMNR Stock Forecast as BitMine Ethereum Buying Spree Continues appeared first on The Market Periodical.
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