The stock of BitMine, led by Tom Lee, has experienced a substantial decline in recent months, wiping out billions in market value. The price of BMNR has fallen by over 78% from its peak this year, a trend that mirrors the struggles of other companies in the Digital Asset Treasury (DAT) sector, such as MicroStrategy (MSTR) and MetaPlanet. Despite this downturn, BitMine has continued to acquire Ethereum, amassing tokens valued at over $11.3 billion, which accounts for approximately 3% of the total market capitalization. In the last 30 days alone, the company has added more than 331,000 tokens to its holdings.
A closer examination of BitMine reveals it has fared better than its peers. Over the past three months, BMNR has decreased by 20%, while MSTR and MetaPlanet have seen declines exceeding 40% during the same timeframe.
Reasons for BitMine”s Competitive Edge
There are several compelling reasons why BitMine may represent a more attractive investment compared to MSTR and MetaPlanet. First, BitMine is preparing to launch the Made in America Validator Network (MAVAN) in 2026, a strategic move that aims to generate revenue from its substantial Ethereum holdings. According to data from StakingRewards, staked Ethereum offers an annual return of approximately 2.75%. If BitMine were to stake its entire collection of ETH, the projected revenue could exceed $302 million annually, providing a financial cushion against market fluctuations.
In contrast, MetaPlanet and MSTR primarily hold Bitcoin, an asset that only appreciates in value during bullish trends and does not generate returns in a bear market.
Secondly, the current market dynamics favor Ethereum. The supply of ETH on exchanges has dropped to a historic low, with only about 8.26% of its total supply available for trading, compared to Bitcoin, which has around 14% on exchanges. This reduction signals increasing demand among investors for Ethereum.
Finally, significant players in the financial sector are increasingly building on Ethereum, highlighting its growing importance. Companies like Visa, PayPal, Fidelity, and JPMorgan are all developing solutions based on Ethereum, with the total real-world assets (RWA) linked to Ethereum rising to $12.7 billion, far surpassing BNB Chain, which stands at $1.7 billion.
Moreover, BitMine is already a profitable enterprise, having reported a net income of over $321 million in the last fiscal year. This financial performance enabled the company to distribute an annual dividend of $0.01 per share.
While it is essential to recognize that BitMine and other companies in the treasury sector may face continued pressure in the near term due to declining demand for digital asset treasury businesses, the trajectory of BitMine suggests that its ability to generate cash flow may position it as a more profitable entity compared to MSTR and MetaPlanet in the long run.
