- BitMine stock price has crashed to a crucial support level this year.
- The decline happened as Ethereum lost momentum.
- The narrative will likely change from dilution to yield in the near term.
BitMine stock remains under pressure this month as Ethereum pulls back amid elevated risks in the crypto market. BMNR was trading at $18.8, its lowest point since April 2nd. It remains much lower than its last year’s high of $160. Still, there are some reasons why it may rebound in the coming weeks.
BitMine Stock to Soar as Narrative Shifts From Dilution
A major catalyst for the BMNR stock price is that the narrative in its business will change from dilution to yield in the coming months. That is crucial because the company has been in dilution mode since mid-last year, raising billions of dollars to acquire Ethereum.
This dilution means that its total outstanding shares have jumped from 234 million in July last year to nearly 500 million today. Dilution is risky to shareholders because it reduces their stake in the company.
On the positive side, BitMine has mapped out its Ethereum accumulation strategy, ensuring it will own just 5% of those in circulation. This means that it will own about 5% of all the tokens. It now holds 5.27 million coins, with over 301k added to its balance sheet.
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The accumulation means the company will conclude it in the next few months. Chances are that it will end in July or August this year. After that, BitMine will accelerate its revenue growth through MAVAN, its staking platform. It will start making about 180k coins, which it can use to repurchase its stock or even pay a dividend.
Another potential catalyst for the BMNR stock price is an eventual rebound in the Ethereum price. ETH was trading at $2,115 today, down from this month’s high of $2,445. In most cases, periods of weakness lead to strong rebounds.
For example, the Ethereum price dropped by over 60% from its December 2024 high to its April 2025 low. It then staged a strong comeback, jumping from $1,450 to a high of $4,942 in August last year. The same may happen this year.
BMNR Stock Price Technical Analysis
Technicals suggest that the BMNR stock price has remained inside a narrow range in the past few months. It has been stuck between the support and resistance levels at $18.30 and $23.9 in this period. That is a sign that it has been in the accumulation phase of the Elliot Wave pattern.
This accumulation phase is usually followed by the markup stage, which is characterized by strong moves. The stock has also formed a triple-bottom pattern, a common bullish reversal sign.
Therefore, there is a likelihood that the stock will rebound sharply in the coming days. If this happens, the next key target to watch will be at $23.95. A break above that price will signal further gains, potentially to $34.35.
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