BitMine Immersion Technologies stock took a sharp hit on Monday, falling over 25% despite a fresh round of bullish messaging from Tom Lee of FundStrat.
Investors seemed unconvinced by the plan to make BitMine a major holder and staker of Ethereum. The dip came after shares slid over 10% during regular hours to $35, then dropped another 15% in after‑hours trading.
According to FundStrat’s Tom Lee, BitMine plans to hold 5% of Ethereum’s total supply and become a “made in America validator network.”
He highlighted that BitMine already has 600,000 ETH on its balance sheet—worth more than $2 billion at current prices.
Lee even floated the idea that Ether could reach an implied valuation of $60,000, citing unnamed research firms. But those bold figures failed to calm the market.
10/18 We asked several research firms to give us “replacement” value (of Wall Street) to value ETH
Analysts had pointed out that BitMine’s stock had wildly surged earlier this month. The price shot up more than 3,000% to a yearly high of $135 on July 3 after the initial announcement of the Ether‑buying strategy.
That rally was met with a wave of profit‑taking once the plan was fully laid out. Many traders sold into the strength, and the mood shifted quickly when shareholders saw the fine print.
Based on reports from Kronos Research, treasury rollouts on this scale require a solid plan to protect capital and maintain liquidity.
Vincent Liu, Kronos’s chief investment officer, warned that without clear steps for custody and staking infrastructure, holding large amounts of Ether could create big swings in value.
And those swings spooked some investors when Lee’s “chairman’s message” failed to pin down exact timelines or reveal audit partners.
On top of that, the implied $60,000 target for Ether came from sources that remain unnamed. That lack of transparency set off alarm bells.
Investors want to know who did the math and whether the data holds up under scrutiny. When price targets are presented without clear attribution, doubt grows fast.
Meanwhile, other firms are also loading up on Ether. SharpLink Gaming controls 438,000 ETH. Bit Digital holds over 100,000 ETH. Blockchain Technology Consensus Solutions recently boosted its stake to 29,122 ETH after raising $62 million.
Finality Capital’s partner David Grider compared the trend to Strategy’s big bet on Bitcoin—saying these moves should help ETH flows and price action. Finality Capital, he disclosed, holds a position in BitMine itself.
Featured image from Meta, chart from TradingView
