Summary BMNR's pivot to an Ethereum treasury model offers leveraged upside, aiming to acquire 5% of all ETH and trade at a premium to NAV. The company’s aggressive ETH accumulation strategy, led by Tom Lee, mirrors MSTR’s BTC playbook and could unlock staking and DeFi opportunities. Risks include ETH price volatility, share dilution from capital raises, and regulatory uncertainty, making BMNR a high-risk, high-reward investment. I am bullish on BMNR as a leveraged ETH play, believing mass adoption and regulatory clarity could drive substantial shareholder returns over time. Bitmine Immersion Technologies ( BMNR ) has gained a lot of steam as Tom Lee from Fundstrat has transformed what was once a company focused on Bitcoin ( BTC-USD ) mining to a leading Ethereum ( ETH-USD ) treasury company globally. BMNR’s strategy is designed to accumulate ETH through capital raises and strategic purchases and mirror what Michael Saylor has done through Strategy Inc. ( MSTR ). BMNR’s goal is to acquire up to 5% of all the ETH in circulation. While I am not favoring BMNR over holding ETH directly as I currently do, I believe BMNR has the potential for explosive growth as there is leveraged upside potential, which can receive a large premium on the net asset value (NAV) of its ETH holdings. As BMNR acquires more ETH, its NAV will increase, and investors could experience amplified returns if ETH is in an upward trend. If BMNR does reach its goal of owning 5% of the total ETH in circulation, it could enhance network effects and scarcity, which would allow BMNR to outperform the returns of just owning ETH directly, which is reflected in how BTC treasury firms have historically outpaced BTC’s price appreciation. BMNR still maintains some of its prior BTC operations, but the value is becoming more correlated toward ETH, which I am more bullish on because I see BTC as a store of value with minimal to no utility. The move into ETH will provide BMNR with broader crypto ecosystem exposure, which could include large staking rewards and DeFi integrations. As of August 11th, BMNR became the largest ETH treasury globally as it added 316863 ETH over the course of one week, going from 833,137 to 1.15 million, and it is now the 3rd largest crypto treasury globally. As of the current price, BMNR has a NAV of $5.2 billion just on its ETH holdings with a market cap of $6.33 billion. I am bullish on ETH and believe that over the next several years its price per token will have the ability to experience large amounts of appreciation, which is bullish for BMNR as it should trade at a premium to its ETH holdings. BMNR is likely to continue its capital raises, which will expand its NAV and the amount of ETH it holds, which should also lead to tremendous expansion from the levels it’s at today. Seeking Alpha Risks to investing in BMNR Just because I am bullish on ETH and BMNR does not mean that BMNR will produce positive returns in the future. Investing in BMNR is an indirect investment in ETH, as it’s holding 1.15 million ETH with plans to own 5% of the ETH in circulation. BMNR has become the world’s largest holder of ETH, which is still a highly speculative asset that is extremely volatile. If ETH’s price declines, then BMNR could see drastic declines in its share price as it’s the main asset on BMNR’s books. BMRN is frequently issuing new shares using market offerings and public sales, which can lead to significant dilution. As BMNR adds shares to fund its ETH acquisitions, the amount of ETH each share represents could decline and cause the share price to decline in the future. There are also unknown regulatory risks for BMNR as U.S. and global rules could change in the future. There could be risks for ETH as central bank digital currencies may compete with ETH. If mass adoption with ETF doesn’t occur from stablecoins being built on top of it and tokenization of assets becomes a flop, then the utility appeal of ETH will decline, which could cause a massive drop in ETH prices and correlate to large losses for BMNR. Investors should do their own due diligence on ETH and BMNR before allocating any capital toward BMNR, as this is not a traditional equity and it comes with much larger risks. Why I have become very bullish on BMNR BMNR has gone from specializing in immersion-cooled BTC mining to aggressively amassing an ETH treasury under the leadership of Tom Lee, who is a veteran Wall Street analyst and crypto advocate. This strategic pivot has led to substantial capital raises, including a recent expansion of stock offerings to $24.5 billion and their positioning themselves to acquire 5% of the ETH in circulation. BMNR launched its ETH treasury on June 30th, and it's already the largest ETH treasury in the world as it owns 1.15 million ETH with a value of $5.2 billion. BMNR is still operating its ongoing mining operations and hosting services, which provide diversified revenue streams that will complement the ETH focus that BMNR is embarking on. By leveraging equity issuances to fund ETH purchases, BMNR emulates MSTR’s playbook and adapts it to ETH’s smart contract ecosystem, which could unlock staking yields and DeFi integrations to enhance shareholder value. When MSTR started, it was trading at $13.49 while BTC traded for $11,000, and by the end of June 2025, BTC increased by 11x to $118,000 and MSTR increased by 30x to $407.76. BMNR had increased by 9.5x at the end of June, while ETH experienced a 1.5x increase, and the current treasury strategy could lead to larger gains in BMNR’s share price compared to ETH going forward. Bitmine Immersion Technologies ETH is an open-source blockchain platform that is decentralized, which allows end users to create and execute smart contracts and decentralized applications ((dApps)). ETH operates as a peer-to-peer network where participants maintain a shared ledger of transactions without relying on intermediaries like banks or governments, which is secured by a global network of computers operating Ethereum software. The smart contract aspect is a self-executing program stored on the blockchain that automatically runs when predefined conditions are met, which can include transferring funds or executing trades. They power dApps, which can range from decentralized finance platforms to games and social networks. Stablecoins are cryptocurrencies that are designed to maintain a consistent value and bridge traditional finance and crypto by enabling fast, low-cost transactions while preserving stability. ETH has become a primary platform for building and issuing stablecoins due to its widespread adoption. ETH’s smart contract system allows stablecoins to be programmed with automated mechanisms for maintaining their peg, such as collateralization, algorithmic adjustments, or reserves managed via decentralized autonomous organizations. USDC , which is issued by Circle ( CRCL ), is built on ETH because of its secure and scalable environment that supports high liquidity and interoperability. The ERC-20 token standard simplifies creation and integration, which makes it easy for stablecoins to interact with DeFi protocols, exchanges, and wallets on the network. As the leading smart contract blockchain, I believe that ETH will expand its current utilization rate as it is already powering thousands of dApps, DeFi protocols, and stablecoins. There is also the ability to tokenize real-world assets like bonds and real estate, which would position ETH for mainstream integration. We’re seeing mainstream interest surge as BlackRock just purchased an additional $338 million of ETH and SharpLink Gaming ( SBET ) has acquired over $3 billion of ETH since May. There is currently $410 billion worth of value secured on ETH, and the largest institutions are buying large amounts of ETH as more assets become tied to it. I am very bullish on BMNR because it provides leveraged exposure to ETH, and it should trade at a larger premium to NAV in the future. As an ETH Treasury, BMNR can outperform direct ETH holdings as it would generate network effects from its underlying ETH through staking and creating scarcity in the marketplace. While this may sound silly, I believe that BMNR trading as a traditional equity on the NYSE is bullish because it can be bought through standard brokerage accounts, which avoids complexities of crypto exchanges, such as wallet management, private key security, or custody risks. BMNR may also appeal to institutions that don’t want direct exposure to crypto and would rather allocate capital toward an ETH Treasury for exposure to the asset class. The GENIUS Act , which was recently signed into legislation, is the first comprehensive federal regulatory framework for stablecoins, and it aims at fostering innovation in the crypto space. I believe this is bullish for ETH due to its dominant role in the stablecoin ecosystem, and it will pave the way for increased liquidity as ETH will be looked at as a compliant hub for tokenizing real-world assets and payments. We are still in ETH’s infancy, and depending on how widespread the use case gets, ETH could see its price expand considerably, which would be very bullish for BMNR as it should get a levered premium on its trove of ETH. Bitmine Immersion Technologies Conclusion My bull case for BMNR is tied to increased utilization across the ETH ecosystem. The GENIUS Act has paved the way for mass adoption, and we are in the infancy of what ETH can be used for in the future. The past decade has shown us that everything is going digital, and ETH could be the bridge to tokenizing asset markets and stablecoin issuance on ETH, which would encourage institutional adoption. Tom Lee has labeled ETH as the biggest macro trade over the next 10–15 years and believes that it could hit $25,000 per ETH by 2028. An investment in BMNR is very risky, but if mass adoption across decentralized finance platforms occurs, we could see ETH catch a large bid considering BTC is trading for around $118,000 and has limited utility compared to ETH. If this occurs, then there could be a lot of value to be unlocked in shares of BMNR as it is positioned to be the largest holder of ETH and should trade at a premium to its NAV, which could allow investors to experience large gains from buying ETH independently. I am purchasing BMNR as an indirect play on ETH, as I believe this strategy will generate substantial returns for shareholders over the next several years.