Is BMNR a good stock to buy? We came across a bearish thesis on Bitmine Immersion Technologies, Inc. on Danny’s Substack by Danny Green. In this article, we will summarize the bears’ thesis on BMNR. Bitmine Immersion Technologies, Inc.’s share was trading at $22.53 as of April 20th. BMNR’s trailing P/E was 2.33 according to Yahoo Finance.
Bitmine Immersion Technologies, Inc. operates as a blockchain technology company primarily in the United States. BMNR presents a fundamentally bearish investment case, where the core secular tailwind belongs to Ethereum rather than the company itself. While Ethereum’s emergence as a global settlement layer for digital finance is increasingly validated by regulatory developments such as stablecoin legislation and institutional adoption trends, BMNR functions merely as an equity wrapper around ETH exposure.
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The company’s strategy of accumulating and staking Ethereum—currently holding over 4.4 million ETH—does provide protocol-native yield of roughly 3–4%, but this can be replicated more efficiently by investors through direct ETH ownership or spot ETFs without incurring dilution or management risk.
Operationally, BMNR lacks a real business. Reported earnings are driven almost entirely by mark-to-market gains on ETH holdings, with fiscal 2025 net income of $328 million masking deeply negative operating income and cash flow. This dependence on ETH price movements creates extreme earnings volatility, evidenced by a $4.87 billion loss following crypto price declines. Meanwhile, share dilution has been extraordinary, with the share count increasing 170x in just 16 months, structurally eroding per-share value despite rising absolute ETH holdings.
Industry dynamics further weaken the case, as the digital asset treasury model faces intensifying competition from over 150 similar vehicles and low-cost spot ETH ETFs. BMNR’s NAV premium has already compressed and, at times, turned into a discount, undermining its capital-raising model. Although management aims to scale staking infrastructure and grow ETH holdings, the absence of a durable moat, combined with extreme asset concentration and continuous dilution, results in an unfavorable risk/reward profile where direct ETH ownership is clearly superior.
Previously, we covered a bullish thesis on IREN Limited (IREN) by Industrial Tech Stock Analyst in May 2025, which highlighted its transition from Bitcoin mining to AI infrastructure, scalable renewable-powered data centers, and zero-debt growth strategy. IREN’s stock price has appreciated by approximately 434.21% since our coverage. Danny Green shares a contrarian view but emphasizes Bitmine Immersion Technologies, Inc. (BMNR)’s lack of operating business, extreme dilution, and reliance on ETH price movements rather than fundamental growth.
Bitmine Immersion Technologies, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge fund portfolios held BMNR at the end of the fourth quarter which was 20 in the previous quarter. While we acknowledge the risk and potential of BMNR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BMNR and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
