BitMine Stock Price Target if Ethereum Hits Tom Lee’s Prediction of $9,000

Key Insights

• Bitmine stock price remains near a breakout zone as Ethereum accumulation continues.
• Tom Lee projected Ethereum price could reach between $9,000 and $12,000.
• BitMine is approaching its target of acquiring 6 million ETH.

BitMine Immersion Technologies’ stock has traded sideways in recent months despite fresh highs across U.S. equities and Ethereum’s rebound above $2,300.

The consolidation has come as investors weigh dilution concerns against the company’s expanding Ethereum treasury strategy. However, market attention remains focused on whether Ethereum’s rally can accelerate enough to reprice BMNR stock higher.

Tom Lee Delivers a Bullish Ethereum Price Prediction

The BMNR stock price has moved sideways this year as demand has remained under pressure this year.

Tom Lee, the company’s chairman, believes ETH has more upside this year. Speaking at the Consensus event in Miami, Tom Lee predicted that the coin will jump to between $9,000 and $12,000.

A move from the current $2,300 to $9,000 would be a 286% increase. Similarly, a move to $12,000 would be a 415% increase from the current price.

Such a move would benefit BitMine substantially because it has become the biggest player in the Ethereum treasury market. Data shows that the company now holds 5.18 million tokens worth over $12 billion. It has bought over 376k tokens in the last 30 days.

Most importantly, the company is making progress to hit its 5% target, which analysts expect will be reached in July this year. This 5% would mean accumulating 6 million tokens, which would now be worth over $13.9 billion.

A move to Tom Lee’s base case of $9,000 would bring the value of the 6 million tokens at over $54 billion. Also, if it moves to $12,000, the valuation would exceed $72 billion. These are much higher numbers than the current $12 billion.

A top analyst who closely follows BitMine believes the stock would move between $115 and $140 if it hits the key target of $9,000. He based this on an mNAV of 1.40-1.70.

The analyst also estimates that the stock would jump to between $165 and $220 if it jumps to $12,000. All these are big numbers considering that the stock trades at $22.17 today.

BitMine is Transitioning From Dilution to Yield

The BMNR stock price may stage a strong comeback as the narrative changes from dilution to yield.

This is important because BitMine has spent billions of dollars in the past few years accumulating Ethereum. It is now buying about 100k tokens worth over $230 million each week.

To do that, the company has been issuing shares to raise capital, a move that has been enabled by the at-the-market (ATM), which was expanded in the past few months.

When the company stops selling shares to fund its Ethereum purchases, the narrative will shift from the ongoing dilution to its yield. BitMine generates its yield through staking its Ethereum hoard through its MAVAN product.

By staking all 6 million tokens, the network will generate about 180k coins in staking each year. If Ethereum hits $12,000 as Tom Lee predicts, then that amount would be worth over $2.1 billion, a substantial amount for a company with a handful of employees.

BMNR Stock Price Technical Analysis

The daily chart shows that the BMNR share price is likely in the accumulation phase of the Wyckoff Theory, which is characterized by a prolonged sideways movement.

The stock has formed a double-bottom pattern at $17 and a neckline at $23.84. It is attempting to move above the 50-day Exponential Moving Average (EMA).

Therefore, the stock will likely have a strong bullish breakout, potentially to the next key resistance level at $42, its December 2021 high. Crossing that price will point to more gains in the coming months.

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