For the year, crypto company Bitmine Immersion Technologies (BMNR 1.78%) is up a head-spinning 300%. At a time when major cryptocurrencies -- including both Bitcoin (BTC +2.78%) and Ethereum (ETH +3.64%) -- are down anywhere from 5% to 50% for the year, that would seem to suggest that Bitmine is a strong buy headed into 2026.
But wait just a second. Almost all of those gains came during the summer, when Bitmine exploded in price. Since September, all the air has gone out of Bitmine's sails. At a price of just $30, it's now trading at a hefty discount to its 52-week high of $161.
This leads to an interesting situation. The stock is up big for the year, but is down 80% from its summer highs. So is Bitmine Immersion Technologies a buy, sell, or hold in 2026?
As Ethereum goes, so goes Bitmine Immersion Technologies
The first thing you need to know about Bitmine Immersion Technologies is that it is highly leveraged to the price of Ethereum. That's because Bitmine is one of the new-fangled Ethereum treasury companies that launched this summer. Simply put, Bitmine is to Ethereum what Strategy (MSTR 0.73%) is to Bitcoin.
The sole goal of Bitmine is to accumulate as much Ethereum as it possibly can, as quickly as it can. And, to its credit, it has followed through on this mission quite well. The company now holds nearly 4 million Ether, valued at approximately $12 billion. That's roughly 3% of all coins in circulation.
Image source: Getty Images.
Right now, Bitmine Immersion Technologies is the largest publicly traded Ethereum treasury company on the planet, and it's not even close. The next-biggest Ethereum treasury company, SharpLink Gaming (SBET 1.19%), holds just 859,000 Ether valued at approximately $2.5 billion.
NYSEMKT: BMNR
Key Data Points
But here's the problem: As Ethereum goes, so goes Bitmine Immersion Technologies. When the price of Ethereum is soaring, as it was this summer, the price of Bitmine is going to skyrocket. But when the price of Ethereum is sagging, as it is now, the price of Bitmine is going to fade.
Should Bitmine be valued at more than its Ethereum holdings?
Given that Ethereum treasury companies are essentially just hoarding Ethereum, waiting for its price to appreciate, investors must answer the following question: Should they value these companies simply based on their overall Ethereum holdings, or should they attach a premium to these companies?
That question is particularly relevant now, when the prices of cryptocurrencies are falling across the board. Investors were willing to attach a premium when the prices were soaring, but are much more cautious now.
CRYPTO: ETH
Key Data Points
Case in point: the value of Bitmine's Ethereum holdings is $12 billion, and the valuation of Bitmine in the public equity markets is $13 billion. The premium is now just 1.08, and likely going all the way to 1.
That was the case with the Bitcoin treasury companies, which saw their market premiums shrink over time. In fact, 1 in 4 Bitcoin treasury companies are now trading for less than the value of their Bitcoin holdings, according to K33 Research.
For now, that's not the case with Bitmine Immersion Technologies, but it's not out of the question that it could happen next year. If it does, then Bitmine would become an immediate sell.
Shouldn't you just buy Ethereum?
Given this situation, here's what I'd suggest: Just buy Ethereum. Or, at the very least, a spot Ethereum ETF. As an investor, you're not getting properly rewarded for holding an Ethereum treasury company. Investing in crypto is risky enough. Why add another layer of risk by investing in a company that does nothing but buy Ethereum?
If you're already holding Bitmine Immersion Technologies, now is the time to swap into Ethereum. In 2026, I wouldn't be surprised if investors across the board make the same decision. Crypto treasury companies were fun while they lasted, but for me, the math no longer makes sense.
