On July 3, the stock price of Bitmine Immersion (stock code BMNR) in the United States surged by 64.2% on the same day, now selling at $96.06 per share, and astonishingly, the stock price has increased by more than 21 times over the week.

The reason for such a crazy increase is related to the company's previous actions: it just announced that it secured a large investment of $250 million, planning to use this money to buy a substantial amount of Ethereum, treating Ethereum as an important 'asset' for the company while continuing its main business of Bitcoin mining. The market finds this credible, so the stock price surged.

As retail investors, don't get carried away by the short-term surge: a 20-fold increase in a week sounds tempting, but such explosive growth often carries a 'gambling' nature, possibly driven by market sentiment, and not necessarily linked to the company's actual value. Just think about it, how can a normal company's performance support such a crazy surge? It may rise quickly, but it could fall even faster.

We need to clarify where the 'confidence' in the stock price increase comes from? This company's core business is still Bitcoin mining, while also accumulating Ethereum reserves. However, the price volatility of cryptocurrencies is enormous, and regulatory policies are strict. Today it might rise due to financing news, but tomorrow it could fall back due to tightened regulations or a plummeting coin price. You must first understand whether you are buying it because you believe in its long-term business, or just to 'chase the trend'; the latter carries extremely high risks.

The volatility of such stocks is too great; if you invest most of your money, a reversal in trend could lead to significant losses. Among stocks that experience short-term surges, large funds may be speculating, and once retail investors follow in, they might suddenly sell off, leaving the retail investors trapped. Especially for companies related to cryptocurrencies, news and funding can be manipulated, making it very difficult for ordinary retail investors to predict.

In summary, if you want to engage with this type of stock, you need to think clearly about whether you can withstand the risk of a sharp decline, and don't just see others making money while ignoring the hidden pitfalls.