Ethereum (ETH) focused giant BitMine (BMNR) announced that it is accelerating its strategy to increase ETH reserves with a $1 billion share buyback decision.
US-based Ethereum (ETH) treasury company BitMine Immersion Technologies announced that it will repurchase up to $1 billion of its own shares with a decision approved by the board of directors. BitMine stated that it made this decision to increase its Ethereum reserves and to provide a long-term confidence message to its investors.
According to the data, BitMine has approximately $2.8 billion in cash and crypto assets. The company's reserves include 625,000 ETH ($2.4 billion), 192 Bitcoin (BTC) ($22.8 million), and $401.4 million in cash. BitMine's net asset value (NAV) per share is reported to be $22.76.
Tom Lee, Chairman of BitMine's Board and co-founder of Fundstrat, evaluated this move in connection with the Ethereum strategy, stating:
"In our journey to accumulate 5% of the Ethereum supply, we sometimes believe that the best return on our capital will come from buying our own shares."
Ethereum's ChatGPT Moment
Tom Lee also believes that Ethereum will undergo a significant transformation alongside the explosion in stablecoin usage. Lee describes this process as Ethereum's "ChatGPT moment," predicting that stablecoins will attract a large user base to Ethereum. According to Lee, stablecoins will strengthen Ethereum's dominance in the industry by further popularizing smart contracts on the Ethereum network.
Recently, BitMine shares have experienced significant fluctuations in price, dropping from a peak of $161 three weeks ago to $31.70 currently. The company plans to actively implement the buyback program, especially if the share prices fall below the NAV value.
With this move, BitMine aims to strengthen its leading position among companies like SharpLink, Bit Digital, and BTCS that are rapidly growing their Ethereum reserves.$ETH