Summary Bitmine Immersion has morphed from miner to Ethereum-heavy crypto treasury and services platform, offering staked yield and advisory upside while trading near underlying asset value. BMNR controls over 3.6 million ETH plus Bitcoin, moonshots, and $800 million cash, nearly $12 billion in assets, yet trades above its net asset value. I view BMNR’s Ethereum stack as material for a staking and services engine, converting volatile NAV into recurring income while valuing services at zero. Even a conservative 3% staking yield implies $363 million pre-tax income, about $0.95 EPS, supporting $9.50 per share franchise value beyond current near-NAV pricing. Key risks are Ethereum underperformance, sideways prices, and execution on scaling services, which could entrench a NAV discount, yet I see BMNR as a "Buy". My Thesis On BMNR Stock Bitmine Immersion Technologies, Inc. ( BMNR ), which was initially known as a miner, has effectively become a crypto‑treasury and services company that holds a very large position in Ethereum USD ( ETH-USD ) and develops a digital asset ecosystem services platform to help its clients with their own digital‑asset treasury management/infrastructure. I think it's a great non-AI pick in a hyper-growth area (crypto), where investors can get a nice yield via staking on an investment that is priced close to its NAV. BMNR looks like an ideal diversifier for a growth investor who doesn't want to go directly to crypto exchanges and who doesn't want to overpay for what's kept on the balance sheet. Plus, the services revenue is basically valued at 0 (today's valuation is almost entirely crypto + cash on the balance sheet), so what BMNR earns from its services ahead is a free call option we're getting on top of the ETH. I think buying BMNR at $30-32/share is a nice deal, so I rate the stock as a "Buy". My Reasoning According to the latest press release, which came out last week , BMNR holds 3,629,701 ETH, 192 bitcoins, $38 million stake in Eightco Holdings Inc. ( ORBS ) or "moonshots", and unencumbered cash of $800 million, so at today's spot prices, the firm's total assets equal almost $12 billion: $3058.79 * 3,629,701 + 192 * $93,054.92 + $38 million + $800 million = $11,958 million (~$12 billion). Source: Oakoff's calculations. The company's market cap after yesterday's rise of over 10% is ~$12.19 billion, according to YCharts data, so BMNR is valued only 1.5-1.6% above its NAV (its balance sheet is derisked as it holds debt ). Data by YCharts What immediately comes to mind when investors come across BMNR is a comparison to Strategy Inc. ( MSTR ), but unlike MSTR, BMNR has so far avoided issuing debt, instead using equity capital to buy ETH, thus removing any insolvency risk tied to margin loans or bonds. BMNR's management is targeting ~5% of the ETH supply, currently holding only roughly 3% (up from ~2.7–2.8% just a month earlier), which isn't held idle but is going through staking via the Made‑in‑America Validator Network (MAVAN) and third‑party staking providers, which generates rewards paid in ETH even (if the ETH price doesn't move). Plus, as I noted in the beginning, the firm runs Bitcoin‑related activities and sells equipment and infrastructure products tied to mining and data‑center operations, also providing digital‑asset advisory/treasury services for other companies. So, in other words, theoretically speaking, the company should be valued for its income generation and ROE/ROA, not solely on the NAV basis like a commodity. For FY2025, BMNR generated ~$6.1 million of revenue (+84% YoY), but its full‑year net income amounted to ~$328.2 million, which led to a GAAP EPS of ~$13.39 on the back of mark‑to‑market gains from its expanding crypto treasury. If we look at the 10-K's income statement , we'll notice that the company actually lost money on its small operating business, then it took a massive non‑cash warrant charge, but more than offset all of that with an even larger $805 million mark‑to‑market gain on its crypto holdings. The management has chosen to classify that within operating EBIT. All that basically means that BMNR's profit for the period is almost entirely the result of crypto price appreciation. BMNR's 10-K At first glance, it contradicts my thesis that BMNR shouldn't be valued like a commodity because its business is currently based on ETH and BTC revaluation. But I'm not claiming that FY25 already shows a clean recurring EBIT stream. The balance sheet today looks so large in comparison with the small services business, but those same assets are exactly what will likely drive future ROE/ROA and income generation once they're systematically staked and wrapped in fee‑earning infrastructure. If BMNR ends up with several million ETH earnings, say, a mid‑single‑digit real staking yield, that alone implies hundreds of millions of annual, largely recurring pre‑tax income before considering any consulting/hosting/advisory revenues. Let me put it differently. Right now, the market tilts to a NAV framework, which is logical because most of BMNR's profits are mark‑to‑market. However, I believe that this is mispricing the whole trajectory underneath. The same NAV is like a raw material for a high‑margin yield and services engine (i.e., MAVAN staking, treasury advisory, hosting/mining economics, etc.) that should eventually convert volatile asset value into more stable cash generation. So over time, as we see more staking and fee income coming up, BMNR's valuation should logically transfer from a simple discount-to-NAV basis toward a multiple of earnings and book value growth. Their NAV will start to act as a floor rather than the whole story, in my view. For now, the small premium to NAV looks more than justified, especially so if we assume that the management's plans for further ETH buying are realized the way we saw it in recent months. And ETH itself seems to be poised for continued strength, assuming that crypto assets remain in heavy usage like to date. The ETH coin handles ~68% of the entire DeFi market , and as another Seeking Alpha analyst, Stone Fox Capital, noted in their recent article on BMNR, the ETH price might have a massive upside if the usage holds and the ETH/BTC ratio pushes higher. Ethereum has more real-world value due to it being the blockchain of choice for stablecoins. BitMine Chairman Tom Lee continues to promote a value potential for the crypto of $62,500 based on the "payment rails" benefit in the future, pushing Ethereum up to a ratio of 0.25x the price of Bitcoin. The ETH/BTC ratio has traded down toward the historical lows at 0.33x. The normal ratio is 0.0479x BTC with a peak in 2021 at 0.873x. ETH would hit $12K and $22K, respectively, on reclaiming these ratios with BTC with the assumption that BTC trades up to $250K per token. Bitcoin currently trades below $90K, so the price targets could require major adjustments without a crypto bounce. Source: From Stone Fox Capital's article . Coming back to Earth, let's try to understand the fair value of BMNR as it is. If BMNR simply stakes its $12.1 billion of crypto and cash at a net 3% yield, that implies about $363 million of annual EBT (pre‑tax income), or roughly $0.95 per share of earnings power (considering the current share count). Let's value it conservatively at a 10x earnings multiple, and we'll get ~$9.5 per share of franchise value on top of today's NAV. If my math is right, the blended value should be in the low‑$40s, so effectively, BMNR is undervalued by 31-33%. Risks As I noted above, BitMine's NAV is almost entirely ETH plus some BTC, "moonshots," and cash, and FY2025 net income was almost fully driven by MTM gains, not real operating profits. If we assume for a minute that ETH keeps underperforming Bitcoin USD ( BTC-USD ), or if ETH simply trades sideways for a long period, BMNR will not be interesting for growth investors with its relatively low staking yield. Plus, given the current business model setup, the stock could trade at a persistent discount to NAV (like many closed‑end funds and holding companies), especially if the market loses patience with the promise of future yield and services leverage. So, it looks like a major risk to my bullishness right now. Plus, if we add an execution to the overall equation, BMNR will become a high-risk story with a questionable scalability of its service revenue streams ahead. Your Takeaway Despite its high-risk profile, BMNR looks like a great non-AI hyper growth play to me for investors who are still looking for a tech exposure but are willing to allocate their capital outside the "prevailing growth theme". At current levels, you're basically paying close to spot NAV for a company that owns one of the largest ETH treasuries in the world, has no debt on its balance sheet, and is on the cusp of turning that static NAV into a fee‑generating platform. My valuation analysis says BMNR might be over 30% undervalued to date. It's definitely a holding for the long run, and I decided to rate BMNR as a "Buy". Good luck with your investments!
