Ethereum News Today: BitMine Stock Falls 6% in Pre-Market As Ethereum Drops 3.46%

Shares of BitMine Immersion Technologies (BMNR), a publicly traded company backed by ARK Invest’s Cathie Wood, fell in pre-market trading as Ethereum (ETH) retreated from record highs. The decline came amid broader market uncertainty, with investors reassessing the trajectory of the cryptocurrency's recent surge. Despite the drop, another Ethereum treasury-linked stock linked to Peter Thiel’s influence showed a positive performance [1].

Ethereum had reached a new all-time high earlier in the day, but the momentum reversed sharply on Sunday following a flash crash that saw the price drop from $114,000 to $110,000 for Bitcoin. This move affected not only the crypto market but also the publicly traded firms that have adopted Ethereum as a reserve asset. BitMine, which holds 1.26% of the total ETH in circulation, has been a key player in the accumulation trend over the last two months. Its stock opened more than 6% lower in pre-market trading, mirroring the drop in Ethereum prices [2].

The company recently announced plans to raise $20 billion through a stock offering to fund additional Ethereum purchases, a move that previously drove its stock up over 12% in a single session. Cathie Wood’s ARK Invest has continued to add to its position in BitMine, signaling confidence in the firm’s strategy to build a substantial ETH treasury. BitMine has also appointed Tom Lee, a well-known Wall Street analyst, as chairman, further solidifying its institutional credibility [3].

Other major Ethereum holders also faced losses. Sharplink Gaming, the second-largest ETH hoarder, fell 4.70%, while Bit Digital dropped 3.13%. In contrast, Ethzilla Corp. bucked the trend and rose by over 3%. These companies have shifted their primary reserve assets to Ethereum, aligning with a growing institutional trend to treat the cryptocurrency as a strategic store of value. As of the latest data, BitMine holds the largest corporate Ethereum reserves, exceeding 1.52 million ETH [4].

Ethereum's recent rally has been fueled by dovish comments from Federal Reserve Chair Jerome Powell and strong institutional interest, including five consecutive months of net inflows into ETH spot ETFs. However, as the market retests key support levels, traders are becoming more cautious, leading to a pullback in equities tied to the cryptocurrency. Ethereum was trading at $4,604.72 at the time of writing, down 3.46% in the last 24 hours [5].

Long-term investors remain optimistic about Ethereum’s fundamentals, particularly with upcoming upgrades and growing demand from institutional investors. Yet the current volatility highlights the risks associated with investing in highly correlated crypto stocks, especially in a market still maturing and prone to rapid sentiment shifts.

[1] Benzinga. "Cathie Wood-Backed BitMine Slides Pre-Market As Ethereum Reverses From Record Highs—But This Peter Thiel-Linked ETH Treasury Stock Has Gained." https://www.benzinga.com/crypto/cryptocurrency/25/08/47303270/cathie-wood-backed-bitmine-slides-pre-market-as-ethereum-reverses-from-record-highs-but-this-peter-thiel-linked-eth-treasury-stock-has-gained?utm_source=coingecko&utm_campaign=partner_feed&utm_medium=partner_feed&utm_content=site

[2] Yahoo Finance. "Cathie Wood-Backed BitMine Slides Pre-Market As Ethereum Reverses From Record Highs—But This Peter Thiel-Linked ETH Treasury Stock Has Gained." https://finance.yahoo.com/news/cathie-wood-backed-bitmine-slides-095616178.html

[3] CoinDesk. "BitMine Immersion's Ether Holdings Top $6.6B, Stock Slides 7% Alongside ETH's Tumble." https://www.coindesk.com

[4] PR Newswire. "BitMine Immersion (BMNR) ETH Holdings Exceed 1.52 Million Tokens, Valued in Excess of $6.6 Billion, and Second Largest ETH Treasury in World." https://www.prnewswire.com

[5] FXEmpire. "Ethereum (ETH) Price Forecasts, Predictions & News." https://www.fxempire.com/crypto/ethereum/news