Key Insights:
- BitMine stock slipped 1.07% to $29.04 despite acquiring another 34,954 ETH, worth $103 million, over the past 24 hours.
- The company now holds $12.61 billion in Ethereum ETH, over 3.5% of the total supply, yet dilution concerns from authorized share increases continue to weigh on BMNR stock.
- Technical analysts spotted a potential double bottom formation that could signal a reversal.
BitMine purchased 34,954 ETH worth roughly $103 million recently, according to on-chain data flagged by Arkham on January 22.
The acquisition brought the company’s total Ethereum holdings to $12.61 billion, now representing over 3.5% of total ETH supply. BitMine staked $279.4 million of ETH since the start of the week, pushing total staked holdings to $5.27 billion.
The aggressive accumulation continued the strategy outlined in the company’s January 20 update, which framed ongoing weekly ETH buying as core to its treasury approach.
Despite the substantial purchase, BitMine (BMNR) stock fell 1.07%, trading at $29.04 as of press time. The muted reaction reflected a pattern that’s played out repeatedly.
BitMine (BMNR) Stock: Dilution Overhang Trumped Accumulation Signal
The baseline for BitMine stock lately is frequent: expected ETH accumulation.
BitMine published repeated updates on holdings and staking, including the January 20 announcement that already positioned ongoing weekly ETH buying as a standard strategy.
An additional buy flagged by Arkham reads as “more of the same” rather than a new strategic surprise. The market already priced in continuous accumulation, leaving little upside from another purchase announcement.
More critically, dilution concerns overshadowed the positive ETH signal. BitMine’s January 20 update emphasized that shareholders approved a major increase in authorized shares at the January 15 meeting.
The charter amendment became effective January 16, expanding future issuance capacity.
Management reiterated its policy prohibiting the sale of shares below “mNAV,” and that combination still pressures BitMine stock.
Approval expands future issuance capacity, and the market often discounts the per-share claim on the ETH pile when it expects more stock issued to fund additional buys. This dynamic showed up repeatedly in prior reactions.
BMNR (BMNR) stock sold off on days when it added ETH, especially when the broader “treasury trade” gets repriced or when ETH itself is volatile. The authorized share increase weighed on price even as Ethereum ETH holdings climbed.
Technical Setup Points to Potential BitMine Stock Reversal
The 0.9% dip sits well within normal noise for BMNR stock, given its typical volatility and high volume. Still, technical analysts spotted formations that could signal a bottom.
Tiger Line Trading identified a double bottom pattern on January 21, calling it a “good buying zone.” The chart showed BitMine stock testing support near $27-28 twice before bouncing both times.
Trader Urkel noted that bulls defended critical support levels and printed a hammer candle, a bullish reversal signal.
He added:
“Bulls defended $BMNR where they had to, and put in a nice hammer candle. Now it’s set up for continuation higher if it picks up some momentum.”
Altcoin Ltd. shared a similar bullish view, noting the chart looked attractive in the current buy zone. He said, “The chart looks very nice,” signaling a “good buying area.”
Historical price action supported the double bottom thesis. After the first bottom formation in late December, BitMine (BMNR) stock bounced sharply from the $27 support zone and rallied to the $34-35 range.
If the pattern repeats, a similar move could push the stock back toward the mid-$30s.
Volume and Momentum Will Determine Next Move
The key question for BitMine stock is whether bulls can generate enough buying pressure to overcome the dilution overhang.
The company’s $12.61 billion Ethereum (ETH) position represents real value, but per-share value is diluted as the authorized share count increases.
BitMine staked $5.27 billion of its ETH holdings, generating an ongoing yield that accrues to the treasury. This provides organic NAV growth without requiring additional share issuance.
However, the market’s focus remained on the authorized share increase approved at the January 15 meeting.
BMNR stock traded with elevated volume, suggesting active investor interest despite the price decline. The hammer candle and double bottom formation indicated buying support at current levels, but breaking above resistance near $30-31 would require a momentum shift.
If Ethereum ETH catches a bid and rallies above $3,100, BitMine stock could benefit from the NAV expansion. The company’s 3.5% ownership of the total ETH supply magnifies any Ethereum price movement in dollar terms.
Conversely, if Ethereum continues consolidating or dips, BMNR stock would face additional pressure regardless of accumulation activity.
The technical setup favored a bounce from current levels, but follow-through volume would determine whether the double bottom plays out or breaks down.
With $12.61 billion in Ethereum ETH on the balance sheet and aggressive weekly staking, BitMine built a substantial treasury position. Whether BitMine (BMNR) stock reflects that value depends on dilution management and ETH price action.