BitMine Immersion (BMNR 0.98%) is posting another day of big gains Monday. The share price was up 3.4% as of 3 p.m. ET. Ethereum's token price was down roughly 0.2% over the previous 24 hours at the same point in the same day's trading. The stock had been up as much as 45.2% earlier today.
BitMine stock rocketed higher today after the company announced that it had made a $500 million investment in Ethereum. While the company's share price has pulled back significantly from the high reached earlier in the day's trading, it's still seeing strong gains in the session.
Image source: Getty Images.
BitMine surges on big Ethereum investment
BitMine Immersion stock skyrocketed this morning after the company published a press release announcing that it now held more than $500 million of Ethereum's cryptocurrency token. The company's share price has pulled back significantly following massive gains early in the session, but it's still up big on the news.
BitMine stock is now up more than 760% over the last month. BitMine's valuation has seen a massive surge after it was announced that Fundstrat's Tom Lee had been named as chairman of the company's board of directors -- and that the company was moving forward with an aggressive push to become the market's leading Ethereum investment company.
What's next for BitMine?
Along with news of BitMine's big investment in Ethereum, the stock initially benefited from bullish momentum for the Ether token -- but the surge lessened with a wind down in the cryptocurrency's bullish momentum. BitMine's valuation will likely continue to see substantial moves in conjunction with the valuation shift for Ethereum's cryptocurrency.
BitMine will likely move forward with an equity and capital management and investment strategy with Ethereum similar to what Strategy (formerly known as MicroStrategy) has done with Bitcoin. By using either debt or new share offerings to fund Ethereum purchases, there's potential for BitMine to see explosive valuation gains if Ethereum's token price continues to climb -- but there's also big risk if the cryptocurrency crashes.
