Tom Lee's Crypto Treasury Initiates $1 Billion Buyback, Shares Plummet 13%

BitMine Immersion Technologies Inc., a crypto treasury company backed by Tom Lee, has announced a $1 billion share buyback plan, sparking investor disappointment as the company had previously stated its mandate to reinvest in additional crypto assets. The company's shares plummeted 13% to $30.60 after the announcement. Lee dismissed concerns, attributing the decline to the registration of shares for trading. The decision has raised questions about the value of the crypto treasury strategy.

Title: BitMine Immersion Technologies Inc. Announces $1 Billion Stock Buyback Plan, Sparking Investor Concerns

BitMine Immersion Technologies Inc. (BMNR), a prominent player in the crypto treasury space, has sparked investor disappointment with its recent announcement of a $1 billion stock buyback plan. The company, backed by Tom Lee, previously committed to reinvesting in additional crypto assets, but the buyback plan has raised questions about the value of its crypto treasury strategy. The company's shares plummeted 13% to $30.60 following the announcement, with Lee attributing the decline to the registration of shares for trading [4].

The stock buyback program, approved by the company's board, allows BitMine to repurchase its shares from the open market and in negotiated transactions, with no strict schedule. The move comes as BitMine aims to achieve its ambitious goal of owning 5% of all ETH in circulation, a strategy Lee refers to as "the alchemy of 5%" [1]. The company has been aggressively accumulating ETH, with recent additions totaling 58,224 tokens valued at $225 million [2].

BitMine's current financial position includes $401.4 million in unencumbered cash and a net asset value of $22.76 per share, derived from a mix of cash and crypto assets. The company's ETH holdings total 625,000 tokens, valued at $2.35 billion, while its Bitcoin holdings amount to 192 coins, valued at $22 million [3]. However, the company's reserves are insufficient to fully fund the $1 billion buyback program, raising the possibility of selling some crypto holdings if market conditions favor short-term gains over long-term ETH accumulation.

The buyback program reflects a broader trend among crypto firms prioritizing share repurchases to enhance shareholder value. However, it also introduces risks, including liquidity constraints and market volatility. BitMine's active trading of ETH, in contrast to more passive approaches, highlights its willingness to adjust its holdings in response to market dynamics.

References:
[1] https://www.prnewswire.com/news-releases/bitmine-immersion-bmnr-announces-1-billion-stock-repurchase-program-302515955.html
[2] https://www.cryptotimes.io/2025/07/29/bitmine-announces-1b-share-buyback-as-ethereum-reserve-grows/
[3] https://www.ainvest.com/news/ethereum-news-today-bitmine-announces-1-billion-stock-buyback-bolster-balance-sheet-eth-accumulation-strategy-2507/
[4] https://www.cryptopolitan.com/bitmine-stock-buyback-crypto-treasury/