Cathie Wood has recently added Bitmine immersion technologies to three of its Ark Invest ETF.
Bitmine follows in the footsteps of the strategy and other companies that have added cryptocurrencies to their balance sheets.
Bitmine’s main business is Bitcoin’s extraction, but Wood considers it a “Digital Treasury assets” company.
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Cathie Wood is one of the most recent Wall Street investment managers. Wood founded the Ark Investment Management in 2014 with an emphasis on destructive innovation and has brought to investors with its transparent, social media approach to the management of the portfolio.
Long -time cryptocurrency, Wood has recently started a position in Bitmin immersion technologies(Freshly removed: BMNR)S ARK’s ETF purchased 4.4 million shares on July 21st. Bitmine stabbed 2% higher the next day, but this is a downturn in the bucket compared to 435% of the stock profit, as it debuted in public markets in June. Now is the time to follow a tree and enter this stock.
Bitmine’s main business is the extraction of bitcoin. The company claims that its technology for mining dipping is more profitable and environmentally friendly than conventional bitcoin production systems. Bitmine also offers mining and bitcoin service consultations.
For its fiscal 2024, which ended on August 31, 2024, Bitmin reported revenue of $ 3.3 million, which is 413% compared to the year. The share of the lion from his revenue comes from mining. While the company reported a net loss of $ 3.29 million, its net money used in operational activities was a loss of $ 28,753 – a dramatic improvement over the loss of $ 809,715 in 2023.
On June 5, Bitmine’s shares began to trade on the New York Stock Exchange with Little Fanfare, closing at $ 7.75 per share. Shortly thereafter, the company began buying Bitcoin, following the steps of Micro -directing (doing business as a strategy) and other companies that have added cryptocurrency to their balance sheets.
Image source: Getty Images.
This is where things apply interesting. On June 30, Bitmin said he was spinning Ethereum as a major financial reserve. The company has announced a private accommodation of $ 250 million for ordinary shares to use its first Ethereum purchase and appoint a market strategist and outspoken cryptocurrency Tom Lee as chairman of the board. The price of the shares jumped 696% on one trade day.
The action has been on a train walk since then, reaching $ 161 per share in early July before settling in a tougher trading range. Bitmine’s shares were traded at about $ 42 per share on July 24. Ethereum, meanwhile, has grown by nearly 139% in the last three months.
As of July 17, Bitmine immersion technologies have 300,657 Ethereum-60 000 tokens of which were through money options of over $ 1 billion. The publicly stated goal of the company is to acquire and bet 5% of Ethereum’s overall supply.
Bitmine said he was focused on Ethereum because of his usefulness as a facilitator of intelligent contracts, joint payments and decentralized financial transactions. In particular, Stablecoins see the main acceptance by users, traders and financial service providers, and Lee called them “Cryp Chat”.
“The acquisition of $ 1 billion is a clear signal for our belief in Ethereum’s long -term value,” Bitmine CEO Jonathan Bates said in a press release.
Bitmine said it plans to use Wood’s net revenue to buy more Ethereum.
Wood is not the only high -profile investor to start a position in Bitmine. Earlier this month, Tech Mogul Peter Thiel revealed a 9.1% share in Bitmine through its risk capital funds.
While Bitmine’s main business is Bitcoin extraction, Ethereum storage has completely changed its investor proposal. You won’t find pure Bitcoin Miners game in Wood flagship Ark Innovation ETFS This is because Wood considers Bitmine a “digital active treasure.”
“These companies can be next -generation asset managers of the chain’s capital markets,” Wood said in a publication at X.
Bitmine reported $ 1.2 million in revenue for its first quarter of the fiscal 2025, which ended on November 30, 2024. This is 135% compared to the year. The company reported a net loss due to ordinary $ 3.9 million shareholders, compared to $ 930,000 in the previous quarter. The increase is mainly due to the accounting correction related to the preferred shares, according to the company.
The price-purchase ratio (P/S) can be a useful indicator of comparing the assessments of non-profit companies. With a P/S ratio of 16 based on 12 months, Bitmine is traded with a premium compared to other cryptocurrencies.
BMNR PS ratio data from ycharts
While Bitmine’s largest line is growing with an impressive video, it is clear to me that investors are piling up because of their huge stock of Ethereum, not its main foundations. After all, it is an unprofitable company that sells shares on ordinary shares to buy Ethereum.
With $ 1 billion on Ethereum in my balance, I would expect Bitmine’s wealth to be closely linked to Ethereum pricing – more than Bitmine’s basics. And that raises the question: as an investor, why just don’t buy Ethereum directly?
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Josh Cable has no position in any of the reserves mentioned. Motley Fool has positions and recommends Bitcoin and Ethereum. Motley Fool has a policy of disclosure.
Cathie Wood has just loaded on this high-flying crypto stock. Do you have to follow her lead? Originally published by Motley Fool
