BitMine Sees Ethereum 'Supercycle' Ahead: What's Going On With The Stock?

Shares of BitMine Immersion Technologies, Inc. (NASDAQ:BMNR) are trading higher Monday. The crypto mining company provided an update on its treasury holdings.

What To Know: BitMine said it now owns 3% of the Ethereum (CRYPTO: ETH) token supply as the company continues to pursue its goal of owning 5% of the total supply. The company’s cryptocurrency, cash holdings and “Moonshots” now total $11.2 billion, including 3.63 million ETH tokens, unencumbered cash of $800 million and other crypto holdings.

“The continued decline in crypto prices in the past week reflects the impaired liquidity since October 10th, as well as price technicals, which remain weak,” said Thomas Lee of Fundstrat.

“A few weeks ago, we noted the likely downside for ETH prices would be around $2,500 and current ETH prices are basically there. This implies asymmetric risk/reward as the downside is 5% to 7%, while the upside is the supercycle ahead for Ethereum.”

BitMine remains the largest Ethereum treasury in the world. The company said the GENIUS Act and the SEC’s Project Crypto are transformational for financial services. The company noted that it will hold its annual shareholders meeting at the Wynn Las Vegas in January.

BMNR Analysis: From a technical perspective, BitMine is currently trading approximately 40.5% below its 50-day moving average of $48.33, indicating a potential area of resistance should the stock attempt to recover.

Conversely, it is trading just 0.1% above its 200-day moving average of $28.72, suggesting that this level could serve as a critical support point in the near term. The relative strength index (RSI) is at 27.47, signaling that the stock is in oversold territory, which may attract buyers looking for a rebound.

BMNR Price Action: Shares of BitMine were up 10.85%, trading at $28.81 at the time of publication on Monday, according to Benzinga Pro.

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