Tom Lee’s BitMine, which is the largest Ethereum treasury company, has announced a significant investment in MrBeast’s Beast Industries. This has sparked a surge in the BMNR stock, which is already up over 16% year-to-date (YTD).
BMNR Stock Rises as BitMine Invests in Beast Industries
The BMNR stock is up 2% in premarket trading, trading at around $33 from yesterday’s close of $32. This rise in the stock’s price follows BitMine’s announcement of its investment in MrBeast’s company.
Source: Yahoo Finance; BMNR Daily ChartAn SEC filing shows that the Ethereum treasury company will make a $200 million equity investment in Beast Industries. Commenting on the move, BitMine’s Chairman, Tom Lee, opined that MrBeast and Beast Industries are the leading content creators of this generation, with a reach and engagement unmatched among GenZ, GenAlpha, and Millennials.
The BitMine chairman added that Beast Industries is the largest and most innovative creator-based platform in the world, and that their corporate and personal values are strongly aligned. Meanwhile, Beast Industries CEO, Jeff Housenbold, revealed that they look forward to exploring ways to further collaborate and incorporate DeFi into their upcoming financial services platform.
The deal will close on or about January 19. It marks a positive for the BMNR stock, which is already one of the best-performing crypto stocks this year. The stock is up over 16% year-to-date (YTD), while it has recorded a gain of over 430% in the last year, with most of these gains coming after BitMine adopted an Ethereum strategy.
BitMine continues to double down on its Ethereum treasury strategy. Tom Lee’s company accumulated 24,266 ETH last week and now holds 4.17 million ETH, which is almost 3.5% of the coin’s total supply.
Major Boost With Staking Plans And ETH Rise
The BMNR stock has also gotten a major boost as BitMine continues to stake its ETH holdings, which will increase the company’s revenue and ETH per share. Arkham data shows that BitMine recently staked 154,304 ETH, worth $520 million, and has now staked a total of 1,685,088 ETH, worth $5.65 billion.
Meanwhile, the crypto market rebound has also contributed to the stock’s price rise, with BMNR rising alongside other crypto stocks such as MSTR, COIN, and HOOD. Specifically, ETH is up 13% YTD, which is a huge positive for the stock, given the company’s exposure to Ethereum.
However, it is worth noting that BitMine’s Ethereum investment remains at an unrealized loss of $2.1 billion, according to DropsTab data. The company’s current average buy price is $3,900, while ETH is currently trading at around $3,400.
Source: https://coingape.com/news/stocks/why-is-bmnr-stock-rising-today/
