Bitmine Immersion Technologies (BMNR) is up more than 20% in afternoon trading after billionaire investor Peter Thiel announced a 9.1% stake in the Ethereum (ETHUSD) treasury stock.
Thiel’s revelation arrives only weeks after the firm named Fundstrat’s Tom Lee its chairman and raised $250 million from a consortium of accredited investors, including Pantera Capital and Galaxy Digital.
Including today’s surge, Bitmine stock is trading more than 1,500% vs. its recent three-month low.
What Thiel’s Stake May Mean for Bitmine Stock
BMNR shares are rallying today because Thiel’s investment is a major vote of confidence in its recently adopted ETH treasury strategy.
As the cofounder of PayPal (PYPL), Palantir (PLTR), and an early investor in Facebook (META), Thiel is globally renowned as a visionary with a unique ability to identify disruptive technologies in their formative phase.
His endorsement could, therefore, drive significant institutional interest and improve the overall investor sentiment – potentially leading to a further increase in the Bitmine stock price over the next few weeks.
Why Have BMNR Shares Been in an Uptrend?
Thiel’s investment in Bitmine Immersion Technologies arrives at a time when the Senate’s recent approval of the “GENIUS Act” is keeping Ether-linked assets in focus.
Why? Because the aforementioned legislation is widely expected to help stablecoins transition into more mainstream adoption – and Ethereum handles the lion’s share of global stablecoin volume.
Investors have rewarded BMNR stock ever since the company started loading up on the world’s second-largest cryptocurrency by market cap. At the time of writing, its corporate treasury has over $500 million worth of ETH.
Bitmine Immersion Remains a Risky Investment
Despite Thiel’s vote of confidence, Bitmine shares remain a high-risk, speculative investment at best.
For starters, the crypto stock is currently up an eye-watering 1,500% versus its year-to-date low in May even though the company’s fundamentals remain in shambles.
More importantly, Wall Street analysts have so far not assumed coverage of BMNR stock, leaving investors with limited access to professional analysis, earnings forecasts, and valuation models.
Without institutional scrutiny, Bitmine Immersion may be much more volatile, less transparent, and prone to hype-driven swings – making it even harder for retail investors to assess real risks tied to the business and its long-term potential.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
