Ethereum News Today: Bitmine’s $1B Buyback Triggers 8.86% Share Plunge Amid Ethereum Strategy Shift

Tom Lee’s Ethereum-focused treasury firm, Bitmine Immersion, has announced a $1 billion stock repurchase program, marking a strategic shift for the Las Vegas-based company as it navigates volatile market conditions and capital allocation priorities [1]. The repurchase plan, approved by the board on July 29, allows the firm to acquire shares in the open market or through negotiated transactions, with execution contingent on prevailing market conditions [1]. However, the announcement triggered an immediate market reaction: BMNR shares fell 8.86% in the 24 hours following the disclosure, closing at $32 on July 30—a sharp contrast to the stock’s recent peak of $135 in June, driven by the company’s transition to an Ethereum (ETH) treasury model [1].

Bitmine’s pivot to Ethereum was formalized on June 30, when the company announced a $250 million private placement to expand its ETH reserves and appointed Tom Lee, founder of Fundstrat, as chairman [1]. Lee, a prominent figure in crypto markets, has emphasized a long-term strategy of balancing capital between share repurchases and Ethereum acquisitions, stating the firm’s goal is to achieve a “5% annual return on capital” through a mix of both approaches [1]. As of July 30, Bitmine holds 625,000 ETH in reserves, reflecting its commitment to the asset class [1].

Despite the stock’s recent decline, Lee attributed the drop to technical factors, noting that newly registered shares became tradable on July 30, which could have contributed to short-term selling pressure [1]. He further clarified that the buyback is intended to enhance shareholder value and ensure the company’s financial sustainability, rather than diverting capital from Ethereum acquisitions [1]. The firm’s market capitalization currently stands at $3.59 billion, according to publicly available data [1].

The stock’s trajectory underscores the challenges of balancing capital allocation in a crypto-centric treasury model. After surging 700% in June on the back of the Ethereum shift, the stock’s recent correction highlights investor skepticism about the viability of such strategies amid broader market volatility [1]. Analysts remain divided on the long-term implications of Bitmine’s dual focus on share repurchases and ETH accumulation, with some arguing that the approach could stabilize the stock price over time while others caution that Ethereum’s price swings may complicate capital management [1].

Source: [1] Tom Lee’s Ethereum treasury announces stock buyback worth $1b, [https://coinmarketcap.com/community/articles/6889bbb9b68c6f644094b2f0/](https://coinmarketcap.com/community/articles/6889bbb9b68c6f644094b2f0/)