Bitmine Immersion Technologies is up sharply this year, but those gains all occurred over the summer.
Bitmine’s value ($13 billion) is now almost identical to the value of its Ethereum holdings ($12 billion).
It is better for investors to simply invest in Ethereum, especially given the recent drop in cryptocurrency prices.
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For the year, crypto company Bitmine Immersion Technologies(NYSEMKT:BMNR) is up 300%. At a time when major cryptocurrencies, including both Bitcoin(CRYPTO:BTC) And Ethereum(CRYPTO: ETH) – are down 5% to 50% for the year, which seems to suggest Bitmine is a strong buy heading into 2026.
But wait just a second. Almost all of these gains took place over the summer, when Bitmine’s price exploded. Since September, Bitmine has lost all its air. Priced at just $30, it is now trading at a steep discount from its 52-week high of $161.
This leads to an interesting situation. The stock is up sharply for the year, but is down 80% from its summer highs. So is Bitmine Immersion Technologies a buy, sell or hold in 2026?
The first thing you need to know about Bitmine Immersion Technologies is that it is strongly linked to the price of Ethereum. Indeed, Bitmine is one of the new Ethereum treasury companies launching this summer. Simply put, Bitmine is to Ethereum what Strategy(NASDAQ:MSTR) is in Bitcoin.
Bitmine’s sole goal is to accumulate as much Ethereum as possible, as quickly as possible. And, to her credit, she carried out this mission quite well. The company now holds nearly 4 million Ether, valued at approximately $12 billion. This represents approximately 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 second largest Ethereum treasury company, SharpLink Games(NASDAQ:SBET)holds only 859,000 Ether valued at approximately $2.5 billion.
But here’s the thing: like Ethereum, Bitmine Immersion Technologies is also evolving. When the price of Ethereum skyrockets, as it did this summer, the price of Bitmine will skyrocket. But when the price of Ethereum falls, as it is currently, the price of Bitmine will fade.
Since Ethereum treasury companies are essentially just accumulating Ethereum, waiting for its price to appreciate, investors need to answer the question: should they value these companies simply based on their overall Ethereum holdings, or should they attach a premium to these companies?
This question is especially relevant today, when cryptocurrency prices are falling everywhere. Investors were willing to attach a premium when prices were soaring, but they are now much more cautious.
Case in point: the value of Bitmine’s Ethereum holdings is $12 billion, and Bitmine’s valuation on public stock markets is $13 billion. The premium is now only 1.08 and could even reach 1.
This was the case for Bitcoin cash companies, which saw their market premiums decline over time. In fact, according to K33 Research, one in four Bitcoin treasury companies are now trading at a price lower than the value of their Bitcoin holdings.
For the moment, this is not the case for Bitmine Immersion Technologies, but it is not excluded that this could happen next year. If so, Bitmine will become an immediate sale.
Given this situation, here’s what I would suggest: just buy Ethereum. Or, at the very least, a spot Ethereum ETF. As an investor, you are not properly rewarded for owning an Ethereum treasury company. Investing in crypto is already risky enough. Why add another layer of risk by investing in a company that does nothing other than buy Ethereum?
If you already own Bitmine Immersion Technologies, now is the time to upgrade to Ethereum. In 2026, I wouldn’t be surprised if all investors made the same decision. Crypto cash companies were fun while they lasted, but to me the math no longer makes sense.
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Dominic Basulto holds positions in Bitcoin and Ethereum. The Motley Fool posts and recommends Bitcoin and Ethereum. The Motley Fool has a disclosure policy.
Is Bitmine Immersion Technologies a Buy, Sell or Hold in 2026? was originally published by The Motley Fool
