Summary BMNR is positioning itself as the MicroStrategy of Ethereum, already holding the largest ETH treasury in the world. Unlike Bitcoin, Ethereum generates staking yields, and BMNR can reinvest those rewards into more ETH, giving it an edge compared to Bitcoin treasury companies. Ethereum’s growth story, especially after the GENIUS Act, provides a powerful long-term tailwind. At ~1.55x mNAV, BMNR trades at a premium, but staking yields, favorable capital market access, and scale arguably justify it. Risks include ETH price volatility, potential compression of the premium to mNAV, and BMNR's lack of daily transparency compared to peers. Bitmine Immersion Technologies ( BMNR ) is positioning itself as the Strategy ( MSTR ) -- formerly MicroStrategy -- of Ethereum ( ETH-USD ), as it already holds the largest Ethereum treasury in the world . But I think it's better than Strategy because Ethereum has more use cases and also generates staking yields for holders. Currently, BMNR stock trades at about a 1.55x premium to its estimated market-to-NAV (known as mNAV). That's not the "ideal" entry point, but it's actually not bad, either, as I believe that BMNR should trade at somewhat of a premium to its mNAV. That's because Bitmine has several ways it can increase Ethereum per share over time, including staking, equity raises at favorable times, and other operations. Most importantly, though, the major tailwind for Bitmine is Ethereum itself, with the Ethereum network set to grow due to tokenization, stablecoins, and AI convergence, which you can read all about in Ethereum-focused articles. Combining the secular growth story of Ethereum with Bitmine's treasury strategy, BMNR gets a Buy rating from me, although investors should consider waiting for a dip in mNAV before being too aggressive. Ethereum's "1971 Moment" If you look at Bitmine's investor presentation, you'll see the company mention that Ethereum is having its "1971 moment." What does that mean? Well, BMNR is comparing Ethereum's current situation to the US dollar’s move off the gold standard in 1971. The move off the gold standard created a synthetic dollar, which led to the creation of many new financial products, such as money market funds, mortgage-backed securities, currency swaps, and more, as per Bitmine's investor presentation . Wall Street Innovation Since 1971 (Bitmine Immersion Technologies' Investor Presentation) The idea is that now, Ethereum is seeing Wall Street and major companies build on its network. Stablecoins are one area where this is happening. As of September 18, $170.6 billion in stablecoins are now circulating on Ethereum. Exactly one year earlier, that figure was $95.75 billion. Total Ethereum Stablecoin Supply (theblock.co) That trend highlights just how quickly Ethereum has become the default platform for digital dollars, with many major stablecoins choosing it as their primary home. It's likely not a coincidence that the Ethereum stablecoin supply started to rise much faster after the GENIUS Act was signed into law on July 18. In case you didn't already know, the GENIUS Act aims to establish a regulatory framework for stablecoins. This is what the U.S. Department of the Treasury specifically said about it on September 18: The GENIUS Act tasks Treasury with issuing regulations that encourage innovation in payment stablecoins while also providing an appropriately tailored regime to protect consumers, mitigate potential illicit finance risks, and address financial stability risks. This is important to Ethereum's "1971 moment," as the GENIUS Act paves the way for dollar-backed assets to migrate onto blockchain rails, much like the dollar's shift off gold in 1971 paved the way for new financial products. Nonetheless, I don't intend to talk too much about Ethereum in this piece, as that would require a whole separate article, and I also assume that many investors looking at Bitmine Immersion Technologies stock are already bullish on Ethereum. If not, you may want to skip out on this stock altogether. BMNR's Strategy As An Ethereum Treasury Bitmine Immersion Technologies is already the second-largest crypto treasury in the world, and it only started a few months ago. On September 15, the company revealed that it had $10.77 billion in total holdings. Nearly $10 billion of that belonged to Ethereum, while $569 million was unencumbered cash. It also reported a $214 million stake in Eightco ( ORBS ) and 192 Bitcoins ( BTC-USD ). We shouldn't ignore the fact that BMNR was able to accumulate so much Ethereum in such a short time frame. That's part of the advantage of having Tom Lee -- who is an "accomplished Wall Street strategist" and the Managing Partner and the Head of Research at Fundstrat Global Advisors -- as the company's chairman. The company has an ambitious goal. It wants to own a 5% stake in the Ethereum network, or around 6 million ETH. Considering that it already had 2,151,676 ETH as of September 15 and accomplished that in a short period, that's not an outrageous goal. Since BMNR is the largest Ethereum treasury company, it will likely have an easier time raising money than smaller players. How BMNR Can Grow Its ETH/Share Over Time One reason to consider BMNR stock instead of buying ETH directly (although that's fine as well) is management's ability to grow ETH per share over time. In its investor presentation, the company laid out five ways it can increase its ETH per share. Bitmine's 5 Ways To Increase ETH/Share (Bitmine's Investor Presentation) #1: " Issue stock at a premium to the dollar value of ETH held per share" This is one of the most obvious and effective ways to increase ETH per share, but it needs favorable market conditions to truly work. Here's a quick example of how that would work: Suppose ABC company has $100 million worth of Ethereum and 10 million shares outstanding, giving it a NAV of $10 per share (assuming it has no other holdings). If ABC's stock price is $15 and it issues 1 million new shares at that price, it would receive $15 million in proceeds. Then, that money would go towards buying more Ethereum. The treasury then would be worth $115 million, spread across 11 million shares, which would raise the NAV from $10 to about $10.45 per share. #2: "Issue equity-linked securities to monetize the volatility embedded in both the stock and the underlying ETH held" Some may read that and be like, "What?" What does the company mean by monetizing volatility and issuing equity-linked securities to do so? Essentially, BMNR could create financial instruments -- like convertible bonds, warrants, or other products -- that are tied to both its stock and its Ethereum holdings. Since BMNR and ETH are volatile, BMNR can "sell" that volatility to investors. For example, let's say big investors want exposure to BMNR's upside potential via a convertible bond. In that case, BMNR can raise money at favorable terms (possibly interest rates near 0% if investors are enthusiastic enough). The company then uses those proceeds to buy more ETH, increasing ETH per share. #3: "Income from operations and invest into more ETH" This one is pretty self-explanatory, so there's no need for me to say anything. However, as of right now, BMNR doesn't have any income from operations. #4: "Earn staking rewards and invest in more ETH" By staking Ethereum, BMNR secures the network and earns a yield on its holdings. This income can be used to buy more ETH. 5: "Acquire DAT trading at close to NAV of ETH held" This could be another head-scratcher if you don't know what DAT means. DATs are Digital Asset Treasuries — companies like BMNR or MSTR. So, put simply, if another treasury company is trading at or near its net asset value, BMNR can try to acquire it. If BMNR buys a DAT at a discount to NAV (although highly unlikely), that would immediately increase mNAV. Another way it can increase mNAV is if BMNR issues shares at a premium to fund the purchase. Valuation: How High Is BMNR's Premium To mNAV? BMNR currently trades at about 1.55x its mNAV, at least according to a website named bmnr.rocks (yes, really; see the image below). BMNR's mNAV And NAV Per Share (bmnr.rocks) The site uses an estimate of shares outstanding, as we don't know for sure how many shares are out there because the company issues shares to buy ETH but doesn't update us on that every day. You'll see many investing platforms say that the company has 173.5 million shares outstanding, but that number is outdated. If that were true, then the market cap would be roughly $10.6 billion, and the company would be trading near mNAV. If I'm not mistaken, the most recent share count update we received from BMNR was on August 25, and the filing says, "Bitmine fully diluted shares outstanding is 221,515,180." However, that was when BMNR had 1.71 million ETH tokens, so some dilution has almost certainly happened since then. The mNAV estimate from bmnr.rocks probably isn't 100% accurate, but it should probably be a close enough estimate. The Current Valuation Isn't Amazing, But It's Better Than You Think Currently, investors are paying a 55% premium above the value of BMNR's Ethereum holdings. At first glance, that may look expensive, and to be honest, I'd prefer if it were lower. I like finding undervalued stocks, so buying something trading at a premium is not something I generally do, unless I'm pursuing a momentum strategy. I even criticized MSTR's very high valuation premium when I called the top on the stock in November (I was exactly right about that). Nevertheless, a bit of a premium is warranted for BMNR. The first reason why a premium can make sense is that, unlike Bitcoin, which produces nothing for investors, ETH investors can get yields from staking. Now, I've never actually staked ETH, so I don't have first-hand experience there, but Coinbase ( COIN ) states that the estimated reward rate of Ethereum is 1.87% if investors hold the asset for 365 days (as of September 19). But I sometimes see platforms talking about mid-single-digit to double-digit yields, and Bit Digital reported an annualized yield of 2.94% for August 2025. Let's assume the price of ETH stays stable for the next year at $4,467 and BMNR is able to generate a 3% staking yield. With its 2,151,676 ETH (also assuming that stays constant, hypothetically) worth $9.61 billion, it would be able to generate approximately $288.346 million from staking rewards in year one, paid in ETH. If BMNR takes that ETH and stakes it the next year, it'd generate more as compounding takes effect. The question is, what multiple do we assign to its staking operations? Even if we give the staking operations a 5x multiple due to the high risk, that's $1.44 billion of added value. Compared to its last reported investment value of $10.77 billion, that's already 13% worth of extra value, justifying a premium of 1.10x mNAV or more. Note: I do realize that the approach I took above is arbitrary, but I'm just trying to make a point that staking gains should translate to a valuation premium -- but how much of a premium is very debatable. I also know investors could just buy ETH directly and stake it themselves, but let's face it, not everyone wants to or will do that. Anyway, since BMNR arguably should trade at a premium based on staking alone, it will likely almost always trade at one, especially in a bull market. Even companies that arguably shouldn't trade at premiums (I'm looking at you, Strategy, but I'm not here to debate that in this article) consistently do. The fact that it will likely keep trading at a premium, which will accelerate the ETH/share accretion and the staking rewards, actually justifies an even higher premium. Some level of premium (although it's not quantifiable) should also arguably be given to the stock just because BMNR is the largest and most well-known ETH holder, with great access to the capital markets, so there's an extra level of trust and prestige there. A quick comparison with MSTR: Since BMNR and MSTR are both the largest treasury companies in Ethereum and Bitcoin, respectively, it may also be useful to compare their valuations quickly. Interestingly, MSTR trades at 1.54x mNAV , so their valuations are essentially in line with each other. But I still prefer BMNR at 1.55x for the reasons mentioned above and because I am more bullish on ETH overall. MSTR's mNAV As Of September 19 (strategy.com) Risks To Consider Some big risks to note are the Ethereum price and the premium valuation. The trend for ETH has been upward in the long term, but the downswings have also been brutal. Since we're on an upswing now and near a previous high, we're going to soon find out whether this level acts as a resistance again to send ETH lower. ETH-USD Chart (TradingView) The valuation premium of an estimated 1.55x mNAV can also be a risk, despite my saying that a premium is justified. It's just hard to know how much of a premium the stock should have, and there's nothing stopping investors from sending it much closer to 1.0x, especially during a bear market. BMNR definitely doesn't need to trade at over 1.0x. Interestingly, SharpLink Gaming ( SBET ), another Ethereum treasury company, trades at just 0.96x mNAV, as per its own website. SharpLink Gaming's Fully Diluted mNAV (sharplink.com) Another risk I'd like to mention is the relative lack of transparency. Other companies, like SBET shown above, as well as Strategy and Semler Scientific ( SMLR ), keep investors updated daily with their various metrics like mNAV. Meanwhile, BMNR investors have to make educated guesses on what the current share count is, with many investors wrongly using outdated share counts like 173.5 million. The Bottom Line On BMNR Stock Bitmine Immersion Technologies is not your average investment, and it's quite risky, but it offers an interesting way to get exposure to Ethereum at a time when the network is quickly expanding. The company's ability to compound ETH per share through staking rewards, opportunistic equity raises at favorable terms (which almost certainly will continue, especially in bull markets), and other treasury operations makes it more than just a wrapper around Ethereum. While the trades are at an estimated 1.55x mNAV, I believe it's not as bad a valuation as it sounds, given its growth levers, scale, and prestige as the largest ETH holders. For investors who are already bullish on Ethereum, BMNR is certainly a stock to consider. I rate it a Buy, but I would advise investors to wait for a pullback in the mNAV multiple before getting too aggressive, just to be safer.