What happened with the Wall Street Whale? Bitmine Holdings has 560,000 Ethereum, and its stock price has "unexpectedly" evaporated by 80% in one month.

In the crypto assets market, the "coin-stock linkage" model, where companies incorporate digital assets into their balance sheets to boost stock prices, has become a significant trend. Among them, Ethereum (ETH), as the second-largest crypto asset after Bitcoin, has attracted the attention of many companies. According to the latest data from StrategicEthReserve, currently, BitMine Immersion Technologies ranks first among companies buying Ethereum for reserves, with open interest reaching 566,000 coins (valued at approximately $2.1 billion). However, perplexingly, despite BitMine holding a massive Ethereum reserve, its stock price unexpectedly evaporated by 80% within a month. What is going on?

(Source: StrategicEthReserve)

BitMine: The Rise of Ethereum Whales and Star Capital Support

BitMine Immersion Technologies was originally a Bitcoin mining company, but since June 2025, the company announced that it would use Ethereum as its main treasury reserve asset and accelerate ETH accumulation through a $25 million private placement (completed on July 3). This strategic transformation has quickly made it a leader in the Ethereum space.

Just last week on the 22nd, the company announced that it had received a $182 million investment from ARK Invest, the investment firm managed by the "female stock god" Cathie Wood. This funding allowed the female stock god to acquire 4,773,444 shares of common stock in BitMine. BitMine stated that the funds would be used entirely to invest in Ethereum. BitMine is currently also supported by institutions such as Founders Fund and is chaired by Tom Lee, the founder of Fundstrat and known as the "Wall Street oracle." Tom Lee even stated, "We are very pleased that Cathie Wood has made a significant investment in BitMine; she sees the opportunity for exponential growth, and our goal is to achieve a 5% share of ETH."

BitMine, which has gathered so many star capital and industry big shots, undoubtedly becomes a dazzling new star in the crypto assets market with its enormous Ether open interest.

Stock Price "Unexpectedly" Vaporizes 80%: The Mystery of Wall Street

However, what is puzzling is that despite BitMine currently holding a large reserve of Ethereum, and the ETH price having briefly surpassed $3,900 yesterday, BitMine's stock price has continued to decline since reaching its peak at the beginning of July (peaking at $161, evaporating nearly 80% in less than a month), closing down 11.78% on the 28th, and dropping another 13.1% in after-hours trading.

BitMine Past 24 Hours Trend BitMine Past Six Months Trend

The phenomenon of the stock price being severely decoupled from the value of its held crypto assets has sparked widespread discussion and speculation in the market. If someone treats the company as the Ethereum version of MicroStrategy, hoping that the stock price can benefit from the continuous rise in ETH coin value, but entered the market too late, then these investors are likely to be trapped now or become the buyers taking over from major shareholders selling at the peak.

Ethereum Price Pullback: The Impact of Market Sentiment

While the stock price of BitMine has plummeted, the price of Ethereum (ETH) has also seen a pullback. After hitting $3,941 yesterday, the ETH price has continued to oscillate downwards, currently reported at $3,745 before the press time, a drop of 3.65% in nearly 24 hours. Whether it can regain momentum to break through the $4,000 barrier has become a focal point of market attention.

Although the price correction of Ethereum may affect the stock price of BitMine, such a drastic decline still leaves the market puzzled about the underlying reasons. This may reflect the market's cautious attitude towards the "coin-stock linkage" model, or there may be other undisclosed factors influencing the stock price performance of BitMine.

Potential Cause Analysis:

The unusual performance of BitMine's stock price may have multiple potential reasons:

Reassessment of the "coin-stock correlation" model in the market: Investors may begin to realize that simply holding Crypto Assets does not guarantee a continuous rise in stock prices, especially in situations where market sentiment is highly volatile.

Profit-taking of short-term speculative funds: After the stock price skyrockets in a short period, it may attract a large amount of short-term speculative funds, which quickly exit once the expected returns are reached, causing the stock price to fall back.

Dilution effect: Despite the injection of star capital, if a company conducts a large-scale stock issuance at a high point in its stock price, it may lead to a dilution of earnings per share, thus affecting the stock price.

Other undisclosed operational or financial issues: Although there is currently no public information, it cannot be ruled out that there are other undisclosed operational or financial issues within the company that affect investor confidence.

Short-term concerns in the market about Ethereum's prospects: Although there are long-term positive expectations, the price fluctuations of Ethereum in the short term may also affect investors' confidence in Ethereum reserve companies.

The phenomenon of BitMine holding a large amount of Ether while its stock price plummets has sounded the alarm for investors in the "coin-stock linkage" model. This not only reminds us that even with the backing of star capital and industry elites, investments in stocks related to Crypto Assets remain fraught with uncertainty, but also highlights the importance of thoroughly analyzing a company's fundamentals and potential risks while chasing trends. Wall Street whales may have their unique strategies, but for ordinary investors, staying vigilant and avoiding blind following is key to protecting their own assets.