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Ethereum News Update: BitMine Bets on a Supercycle as Ethereum Faces Its Own 1990s Telecom Era

Ethereum News Update: BitMine Bets on a Supercycle as Ethereum Faces Its Own 1990s Telecom Era

Bitget-RWA2025/11/14 19:48
By:Bitget-RWA

- BitMine's new CEO Chi Tsang faces a 34% stock decline amid Ethereum's slump. - The firm holds 3.5M ETH ($11.2B) as it aims to accumulate 5% of Ethereum's supply. - Market weakness and ETF outflows drove ETH down 8%, exacerbating BMNR's losses. - Despite volatility, BitMine added 110K ETH weekly, now holding 2.9% of the supply. - The strategy risks heavy exposure to Ethereum's recovery amid Fed uncertainty.

Shares of BitMine Immersion Technologies Inc. (BMNR) declined in tandem with a broader drop in

(ETH) prices after the company named Chi Tsang as its new CEO. The company, which possesses more than 3.5 million ETH—worth about $11.2 billion— of the digital asset after shifting its focus from mining earlier this year. BMNR’s stock dropped close to 4% on Friday, of 34% as the crypto sector faces declining investor confidence and continued hawkish signals from the Federal Reserve.

The leadership change signals a new direction for BitMine, which is targeting ownership of 5% of all Ethereum in circulation. Tsang, who previously worked at HSBC and founded a venture capital fund,

of blockchain, likening its potential to the internet’s transformative effect on the telecom industry in the 1990s. His arrival comes after Jonathan Bates, who guided the company through its transition to an Ethereum-centric treasury, stepped down. with backgrounds in traditional finance, asset management, and law to strengthen its governance.

The drop in Ethereum’s value further pressured BMNR’s stock.

in the last week, sliding from $3,565 to $3,060, as U.S. spot ether ETFs saw over $1.4 billion in net outflows since October. at the fastest rate since 2021, according to blockchain analytics provider Glassnode.
Ethereum News Update: BitMine Bets on a Supercycle as Ethereum Faces Its Own 1990s Telecom Era image 0
The selloff happened alongside broader market weakness, as both stocks and bonds struggled amid uncertainty regarding the Fed’s December policy decision.

Even with the turbulence, BitMine continued to purchase Ethereum during the downturn.

in just one week, raising its holdings to 2.9% of Ethereum’s circulating supply. Chairman Tom Lee described these acquisitions as a strategic investment in Ethereum’s future, pointing to increasing institutional interest in asset tokenization on the blockchain. “Wall Street is discovering new value through Ethereum,” Lee commented, despite ETH’s 35% slide since its August high.

Nonetheless, the company’s treasury approach leaves it vulnerable to market volatility. With BMNR’s shares down 35% since mid-August, its market value is now closely linked to Ethereum’s performance.

, assigning a 53% chance that ETH will recover to $4,000 rather than drop to $2,500. However, reaching Lee’s $10,000 target by year-end would require ETH to surge 180% from current prices .

BitMine’s aggressive buying has cemented its leadership in the Ethereum treasury space,

by fourfold. Still, the company’s heavy reliance on a single asset and the inherent volatility of crypto markets present significant risks. As the Federal Reserve’s policy direction remains unclear and ETF outflows continue, BitMine’s ability to weather the downturn will with the evolving “supercycle” Ethereum ecosystem.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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