BitMine Immersion Technologies (NYSE AMERICAN: BMNR) experienced a significant stock surge of over 690% on Monday following the announcement of a $250 million private placement to issue approximately 55 million shares at $4.50 each. The deal will close by June 30, 2025, with proceeds aimed at accumulating Ethereum (ETH) as a core treasury asset. BitMine operates in low-cost energy regions, focusing on Bitcoin and Ethereum mining to enhance profitability.
Despite the company’s recent growth, which includes a 295.4% average revenue increase over the last three years and a revenue boost from $1.8 million to $4.6 million in the past 12 months, BitMine’s operational performance remains weak. The company reported an operating loss of $3 million, yielding an operating margin of -64.2%. Investors are cautioned about the risks associated with this micro-cap stock, especially given its high price-to-sales ratio of 14.4 compared to the S&P 500’s 3.1.
Historically, BMNR stock has shown volatility, dropping 88% from its peak during the 2022 inflation shock. Although it fully recovered by June 2025, its recent fluctuations add to concerns about its long-term stability amidst a shifting financial strategy focused on Ethereum.
