Shares of BitMine Immersion Technologies Inc. (BMNR) declined in tandem with a broader drop in
Ethereum
(ETH) prices after the company named Chi Tsang as its new CEO. The company, which possesses more than 3.5 million ETH—worth about $11.2 billion—
became the largest corporate holder
of the digital asset after shifting its focus from
Bitcoin
mining earlier this year. BMNR’s stock dropped close to 4% on Friday,
extending a month-long decline
of 34% as the crypto sector faces declining investor confidence and continued hawkish signals from the Federal Reserve.
The leadership change signals a new direction for BitMine, which is targeting ownership of 5% of all Ethereum in circulation. Tsang, who previously worked at HSBC and founded a venture capital fund,
highlighted the disruptive nature
of blockchain, likening its potential to the internet’s transformative effect on the telecom industry in the 1990s. His arrival comes after Jonathan Bates, who guided the company through its transition to an Ethereum-centric treasury, stepped down.
The firm also added three new board members
with backgrounds in traditional finance, asset management, and law to strengthen its governance.
The drop in Ethereum’s value further pressured BMNR’s stock.
ETH fell over 8%
in the last week, sliding from $3,565 to $3,060, as U.S. spot ether ETFs saw over $1.4 billion in net outflows since October.
Long-term holders accelerated selling
at the fastest rate since 2021, according to blockchain analytics provider Glassnode.
The selloff happened alongside broader market weakness, as both stocks and bonds struggled amid uncertainty regarding the Fed’s December policy decision.
Even with the turbulence, BitMine continued to purchase Ethereum during the downturn.
The company added 110,288 ETH
in just one week, raising its holdings to 2.9% of Ethereum’s circulating supply. Chairman Tom Lee described these acquisitions as a strategic investment in Ethereum’s future, pointing to increasing institutional interest in asset tokenization on the blockchain. “Wall Street is discovering new value through Ethereum,” Lee commented,
reaffirming his optimistic outlook
despite ETH’s 35% slide since its August high.
Nonetheless, the company’s treasury approach leaves it vulnerable to market volatility. With BMNR’s shares down 35% since mid-August, its market value is now closely linked to Ethereum’s performance.
Prediction markets reflect cautious optimism
, assigning a 53% chance that ETH will recover to $4,000 rather than drop to $2,500. However, reaching Lee’s $10,000 target by year-end would require ETH to surge 180% from current prices
as projected by analysts
.
BitMine’s aggressive buying has cemented its leadership in the Ethereum treasury space,
outpacing rivals like SharpLink Gaming
by fourfold. Still, the company’s heavy reliance on a single asset and the inherent volatility of crypto markets present significant risks. As the Federal Reserve’s policy direction remains unclear and ETF outflows continue, BitMine’s ability to weather the downturn will
challenge its ambition to connect traditional finance
with the evolving “supercycle” Ethereum ecosystem.