Why BMNR is Hoarding Cash (The "Big Move" is Coming)

There has been a massive shift in Tom Lee's raises this week on BMR and it's showing a sign of an aggressive new strategy from Tom Lee. So, let's go through and look at Bitmine Immersion's total holdings which have now surpassed $10.3 billion. It's been over this amount as Ethereum has surpassed nearly $4.8,000. However, as we break this down into its individual holdings, what we can see is that Ethereum, although it's lower on a per Ethereum basis, now roughly hovering around $2,000 per coin, we're sitting at 4.5 total million coins or essentially a new ad of about 61,000 new ETH this week, which is a pretty nice strategy change since roughly about December of 2025. Every week since then has been much lower. So maybe they're deploying a lot of cash, something along these lines, to get up to essentially 3.76% of total Ethereum supply. However, that's not what we're seeing. The total cash for BMR has skyrocketed past their all-time highs, now hitting $1.2 billion, meaning that their availability to purchase more Ethereum is also at all-time highs while acquiring the most amount of Ethereum that they've purchased in months now. So what does this tell us? Well, the overall raise, which was now at roughly $454 million, is the highest that we've seen since this one single week back in December. And then since then, the one before that was all the way back in October. Most weeks since then, have never hit over 450 million except for one outstanding week. That is a massive change in strategy. Right now, there's been no change in overall staking, but we weren't staking back then. This was essentially something that we started back in December. So even whenever we saw this $533 million raise, we weren't staking then. Now we are, which is still bringing in roughly on an annualized basis $184 million, which is enough to pay for all the stockbased compensation, employee costs and everything like this. So the company is not going bankrupt or going to zero or any of these comments that you see online. It's perfectly profitable and they're going to continue to hopefully stake more Ethereum, which is only going to bring them more money over time. But let's go and look at BMR's cheat sheet that I put together. Currently, the market cap is sitting at about $10.6 billion on a share count of about 513 million. The BMR share count total is hard to sort of get to. Essentially, you need to adjust looking back every single week since the last time that they actually showed us their full share count. And then assume that they purchased at around the average price of the week in diluting on the average amount of BMR cost. You know, assuming BMR's total ETH holdings of $4.5 million at this current Ethereum price, bringing the BMR ETH MNAV to $9.2 billion or about 1.15 times their total multiple. But obviously, they have a lot of cash. So, if they were to fully deploy all of that cash, they'd have a lot more Ethereum. So, you kind of have to look at it between both the BMR, the the Bitcoin and Moonshots, and then their cash as well. which brings us to an exact one times MNAV, meaning it's not really fruitful for them to dilute or to even buy back stock because we're holding the exact amount of what we're actually worth. Now, it does also mean though that we have $1.2 billion. So, if there are dips in Ethereum, which we'll hear from Tom Lee here in a second, but they have a lot of extra cash laying around in case they want to deploy, if they see a potential opportunity. Let's listen to Tom Lee and see what he has to say about that opportunity in general. >> Have you woken up in the middle of the night and looked at where Ethereum is and said, "I I can't go back to sleep." >> No. >> Yeah. You're not worried yet? >> No. Because you know, Ethereum, there's the fundamentals, you know, like what's happening. So much is being built on Ethereum now. I mean almost every major announcement of a tokenized fund is >> does that does that translate to supply and demand car dynamics that make the the price go up though or could you can you just keep building out all these networks at at 1900? >> I mean that would be like someone saying all this activity is happening United States but the economy shouldn't boom you know. >> Yeah. So if it's all taking place on Ethereum then price follows but we are in a crypto winter so price doesn't matter. You know capital is looking at gold and silver and uh ways of you know you know hard assets but that isn't always going to be the case. >> I'd read you buying more Ethereum on the dip. How much more and does that continue today? >> Uh yes. Uh, so Bitmine's been buying about $50,000 or about $100 million of Ethereum every week, but the cash balance has grown to over 800 million. So, it's able to at the right moment buy make a a major buy of Ethereum. So, I think we're getting ready for the crypto bottom. But that amount of cash has raised to 1.2 billion, a massive raise since this video. If we actually go back here, we can end up taking a look at their total cash and look at the raise here. They've gone from 500 million, 670, 800, which is whenever that video was taken, I think that was March 3rd, and then 1.2 billion. Okay. So, if we continue to see a cash rise, then obviously, you know, something's sticking out here. But this flat number here, I just think is sort of the their benchmark of what they wanted to hold in cash. Everything else, I assume, had gone to Ethereum. So, I don't expect this to continue to climb, but obviously as the company has grown, they're holding more cash since the last time where, you know, the benchmark was 1 billion. I do worry that now that we've hit 1.2 billion, we'll sort of flatline out at 1.2 like we did here, just over here. Waiting for that dip. Who knows? Maybe I if they're looking at Tom Demar, maybe they see uh Demark Analytics says that that's going to last four, maybe five more weeks. It it could be a big change in strategy. But then we ended up seeing Bitmine deposit 5,300 Ethereum to Coinbase Prime four hours ago. They don't use Coinbase Prime or at least not to date. So this is quite interesting. Maybe they're using them for custodial purposes, for staking there. There's a ton of reasons why. Obviously, people are pointing to the possibility of them selling Ethereum, but at one times MNAV, there's really no reason to sell. And also, you have a massive cash position as well. So if you were looking to pick up buybacks or Ethereum at one times, it's the exact same thing. You can either choose to do buybacks or you can buy back stock. It kind of leads to the, you know, same outcome, just whether or not you want to buy back the total of both Ethereum and the moonshots put together, which obviously if you're a BMR shareholder is what you believe in doing. And then we also saw Michael Celig, the CFTC chairman right now, ended up saying a couple of interesting things. Over the next several years, we'll focus on ending the days of the CFTC and SEC turf wars, which a lot of that had to do with clear crypto regulation. And that's exactly what he said. Ensuring America remains the crypto capital of the world with clear rules of the road, including the classification of true crypto perpetuals. establishing the gold standard regulation for prediction markets, which he recently just had a a speech talking about how prediction markets on blockchain could be very exciting. And then a lot of the new ERC token protocols that are actually designed for AI, making the US the leading market for AI compute. Another interesting one that could also play back into Ethereum. But there's another video that I wanted to sort of show off to you guys, which actually was Palmer Lucky talking about why stable coins and crypto is going to be great for banking and financial markets in general. I've been looking at starting a bank for a while, primarily for my own personal use because there weren't banks out there that really understood my business, my businesses, the things that I was doing. uh Silicon Valley Bank was doing a reasonable job, but then they went out of business and took everybody's money with them and had to have the government bail everybody out. And I think that was really kind of the thing that that got me very serious about it. I realized that you didn't have banks that were aligned with the United States, interests that were aligned with deep tech, hard tech, energy, the things that are really complex and hard to understand, but that do really matter. Uh that could also serve them in a meaningful way. I mean, you have farmers banks that serve communities that are doing agriculture. You have banks certainly that are doing oil and gas quite well, but when it comes to tech, it's a pretty sparse field. And so, uh, I I I started to think, well, how do you build a bank that could serve those things? How could you do it a very conservative way, very, very lowrisk way you can ensure you're not going to go out of business, you're not going to force everyone to rely on government bailouts? You may not be able to survive a total financial collapse. banks can, but you can at least be the last man standing. And so, uh, thinking about that and then also a lot of things that new technology enables like using dollarbacked cryptocurrencies to have 365 24/7 settlement of payments, which is something that a lot of businesses need and very few get. Uh, you kind of stack all these things together and it becomes clear that there's there's room for a company to to to be a real bank for real companies doing real things. >> So, is there a network effect there? Because if I'm on Arabore and Jord's on Arabore and we can both have 24/7 settlement, but someone else is on a different bank and they don't have 24/7 settlement, we're going to have a good experience and then maybe to get out of the network. How does that work? >> I think that there will be network effects, but to be honest, whatever network effects there are will probably be pretty short-lived. I think that pretty quickly everyone is going to realize that they need to support these things. So I think that when like seeing this administration's support for using specifically dollarbacked stable coins. So not saying we're going to move everybody off of the dollar, we're going to move them off of uh you know the United States currency as the reserve currency for the world, but I think probably most banks are going to get drugged into this. The difference is that we're trying to do it from the start. Uh so so is there a network effect? uh probably but I think most of the forward-looking companies that would value that network effect that one in particular uh see see that in the next few years probably all banks are going to be forced to adopt this to be competitive and I think Palmer Lucky is right here the more companies that offer this 24/7 settlement they're going to start taking clients away from the bigger institutions if bigger institutions feel like their customers are leaving then they are going to need to quickly adapt and offer these types of 24/7 settlements via the blockchain which you know the high majority of those uh actual transactions are happening on Ethereum. This is going to lead to more overall transactions and more activity on the blockchain that BMR is benefiting from. So for me BMR is a great but speculative bet on Ethereum continuing to climb up as more and more financial transactions happen on the ecosystem and that leads to more gas fees bringing down the supply and there's more buyers. Obviously we still need the Clarity Act and that's going to lead to new buyers as well. But these types of real corporate or commercial changes is what's actually going to bring more uh traffic onto Ethereum. And that's actually the driving force of the bull case. But ladies and gentlemen, if you guys like this sort of content, let me know down in the comments down below to make more BMR content. But until next time, bye for