Tom Lee’s BitMine Adds 35,000 ETH, But BMNR Stock Breaks Down
Despite BitMine adding 35,000 ETH to its treasury, its stock (BMNR) fell due to high correlation with bearish Ethereum sentiment.Summary
Tom Lee’s BitMine Immersion Technologies recently purchased another 35,000 ETH, increasing its total holdings to 4.371 million ETH, valued alongside cash reserves at about $9.6 billion. Paradoxically, this aggressive accumulation, which usually signals confidence, coincided with a nearly 2% drop in BitMine's stock (BMNR) over 24 hours, continuing a decline of over 8% since February 13, and breaking down technically via a bear flag pattern.
Analysis of investor behavior shows a mixed picture: On-Balance Volume (OBV) and Chaikin Money Flow (CMF) suggest increasing retail accumulation, indicating underlying buying interest despite the falling price. However, CMF remains below zero, signaling that large institutional capital remains cautious.
The primary driver for the stock's decline is its high correlation (0.52) with Ethereum's price movements. As BitMine acts as a high-beta proxy for ETH, bearish sentiment in the Ethereum futures market, reflected by a low long-short ratio, is dragging BMNR stock lower. Key technical support for BMNR is near $15, with potential downside to $12 or $9 if weakness persists, overriding the bullish signal from the company's growing ETH treasury.
(Source：BeInCrypto)