Why Bitmine Immersion Technologies Stock Flipped Into the red This Week

As stock investors, we are all aware that most equities eventually obey the law of gravity. Sure enough, after a brief bull run, Bitmine Immersion Technologies (NYSEMKT: BMNR) saw its shares plunge underwater this week. According to data compiled by S&P Global Market Intelligence, BitMine's stock price was underwater 11% week-to-date as of mid-session trading on Friday.

Enthusiastic about Ethereum

Bitmine is essentially a crypto treasury company with a little equity on top. Far and away its No. 1 asset is Ethereum, of which it is one of the top institutional holders in the world.

The company updates its holdings every week, and on Monday, it divulged that it held 3,967,210 Ethereum. That gave it 3.2% of the token's total supply, it said. That meant it accumulated 102,259 Ethereum since the previous week's update.

As for BitMine's other holdings, there was no change in its Bitcoin portfolio, which consisted of 193 units, nor in its cash position of $1 billion. Its shareholding in peer crypto company Eightco Holdings was worth $38 million at that point, up from the week-ago figure of $36 million.

Waiting for a spark

Cryptocurrencies of various sizes and profiles rose, predictably, when the Federal Reserve cut its rates earlier this month (lower rates favor such assets, as market players tend to take on riskier plays and eschew safe, income-producing investments).

Yet Fed officials have signaled further cuts might be thin on the ground in 2026, lowering sentiment on coins and tokens generally, and there isn't much else powering crypto prices upward just now.

I don't envision a sudden, price-boosting event happening to Ethereum in the very near future. Since that's far and away BitMine's prize holding, I wouldn't feel compelled to buy the company's stock either.

Eric Volkman has positions in Bitcoin and Ethereum. The Motley Fool has positions in and recommends Bitcoin and Ethereum. The Motley Fool has a disclosure policy.