Should You Buy BMNR Stock Following the Beast Industries Deal?

Las Vegas, NV-based Ethereum treasury firm, BitMine Immersion Technologies BMNR, revealed earlier this month that it has made a $200 million equity investment in Beast Industries as part of the broader expansion plan. Beast Industries was founded by popular YouTube creator MrBeast.

In another encouraging update, BitMine also received shareholder approval to substantially raise its authorized share count. A larger authorized share base gives BMNR added flexibility to raise funds, offer employee incentives and pursue growth initiatives (including acquisitions) without having to seek shareholder approval each time.

Against this backdrop, investors may be inclined to consider buying BMNR’s shares. But is this actually the right time to purchase the stock? Let’s take a closer look.

Factors Supporting BMNR

BitMine is benefiting meaningfully from the rapid growth of stablecoins within the digital asset ecosystem. Stablecoins — cryptocurrencies linked to assets such as the U.S. dollar — offer advantages like lower transaction costs, quicker settlement times, 24/7 accessibility and broad global usability. Their relatively stable pricing also makes them a key connector between traditional finance and decentralized markets, supporting wider adoption of digital assets. Growth in the stablecoin market also supports greater blockchain usage, including Ethereum.

BMNR has transitioned away from its legacy Bitcoin mining operations to pursue a new strategy focused on building the largest Ethereum treasury globally. Last year, BitMine completed an initial $250 million PIPE private placement to facilitate its strategic transition. This capital, along with additional funding, has been directed toward significantly expanding the company’s Ethereum holdings.

The company has aggressively scaled up its ETH treasury to around 4.203 million tokens. This gives it combined cash and crypto holdings totaling $14.5 billion, according to a recent BMNR release. Chairman Lee stated that the company ultimately aims to accumulate 5% of Ethereum’s total supply, highlighting strong confidence in Ethereum’s long-term potential and the broader digital asset economy.

BitMine currently holds 3.48% of the overall ETH supply, meaning it has already reached more than 70% of the target in just six months. By steadily increasing its share of the ETH supply, the company aims to help bring institutional capital and real-world assets onto the blockchain. With this, the company is positioning itself to generate long-term value as digital assets gain momentum.

Most recently, BMNR acquired 35,268 ETH to further strengthen its Ethereum position. As of Jan. 19, BMNR’s crypto holdings included 4,203,036 ETH valued at $3,211 per ETH, 193 Bitcoin, a $22 million stake in Eightco Holdings and total cash of $979 million.

Reflecting its shareholder-friendly stance, BitMine also became the first large-cap crypto firm to announce an annual dividend. Last year, the company declared an annual dividend of a cent per share. At the 2026 Annual Shareholder meeting, management painted a rosy outlook for ETH, calling it the future of finance.

Headwinds That Should Not Be Overlooked

BMNR’s shares have struggled in recent months, falling 25.7% over the past six months. Meanwhile, other companies in the Zacks Technology Services industry — such as Bitfarms Limited BITF and AppLovin Corporation APP — have performed much better during the same period, significantly outperforming BitMine Immersion Technologies.

6-Month Price Comparison

Since BMNR tends to move closely with Ethereum’s price, the decline in the second-largest cryptocurrency (behind Bitcoin) has contributed to the stock’s downward trend. Recent market volatility, along with liquidity concerns, has also weighed on BMNR’s shares.

BMNR has also dropped below its 50-day moving average, an important measure used to assess market direction and momentum. Trading below this level is often seen as a bearish signal and can lead investors to adopt a more cautious stance.

50-Day Moving Average

Moreover, valuation remains a sticking point for BMNR, with shares being overvalued. The company currently has a Value Score of F, pointing to stretched valuation levels. AppLovin and Bitfarms currently have a Value Score of D and F, respectively.

What Should Investors Do With BMNR Stock?

It’s clear that BMNR has benefited from its push to expand Ethereum holdings. The recent investment in Beast Industries and the decision to boost authorized shares also support its growth strategy. BitMine’s shareholder-focused actions are notable as well. In addition, the Wall Street consensus target price of $48.67 implies a significant upside potential from current levels.

However, the risks remain significant. The stock’s performance is strongly tied to the highly volatile crypto market. Overvaluation continues to be a key drawback. In addition, the shifting regulatory environment around cryptocurrencies presents a major risk to BitMine’s financial outlook and longer-term strategy. Rapid technological change and competition from rival blockchain networks could also pressure the stock.

Considering these headwinds, we believe it is not advisable to buy this Zacks Rank #3 (Hold) stock right now. Instead, investors should keep a close watch on company developments and wait for a better entry point.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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