Crypto Treasury Stocks: Why BMNR's 24% Crash Isn't a Bargain

Bitmine Immersion Technologies (BMNR) tanked 24.4% this week, and it’s not hard to see why—the company is basically a leveraged ETH bet wrapped in a corporate shell.

The Setup

Launched this summer as a crypto treasury vehicle, BMNR raised $7B+ and loaded up on Ethereum. Current holdings: 3.56M ETH tokens, which accounts for almost the entire business. Market cap now sitting around $10B—actually below the book value of its crypto holdings ($11.8B as of Nov 17). So technically the stock is trading at a discount? Don’t be fooled.

Why It Crashed (And Why It’ll Keep Tracking ETH)

ETH dropped 28% this week as liquidation cascades hit leveraged traders. BMNR crashed in lockstep because there’s no business complexity here—it’s a pure correlation play. When crypto bleeds, the stock bleeds harder. When growth stocks stumble (and they did this week), risk assets like ETH get hit first.

The Real Problem: Why Own BMNR When You Can Own ETH?

Here’s the cold take: crypto treasury stocks are structurally inferior to buying the underlying asset directly.

Why? Overhead costs (paying management/operations), dilution risk (they can issue more shares), execution risk (managers could make dumb moves with your capital). You’re paying a middleman for zero added value.

If you’re bullish on Ethereum, buy it on an exchange. Same returns, way simpler, no corporate bureaucracy tax.

The Bottom Line

BMNR looking “cheap” right now is a trap. It’s not a discount—it’s a reminder that financial engineering doesn’t beat direct ownership. The stock will probably continue shadowing Ethereum’s price movements, which means you’re getting all the volatility with additional downside risks from corporate mismanagement.

Pass and buy ETH directly instead.