BitMine stock price remained in a tight range, helped by the ongoing consolidation in the crypto market and as traders wait for a major shareholder vote. BMNR was trading at $30, inside the narrow range it has been in the past few weeks.
BMNR Stock to React to a Key Shareholder Vote
There will be several catalysts for the BitMine stock price this week. The most important one will come out on Tuesday when a major shareholder vote concludes.
Its shareholders are voting on whether to authorize an increase in its authorized shares from 500 million to 50 billion.
In several statements, Tom Lee has explained why the company needs such a big increase in its authorized shares, considering that it is about to hit its target for Ethereum accumulation. It has accumulated over 4.1 million tokens against its goal of buying 6 million tokens over time.
Lee has highlighted three main reasons for the big share increase. First, he wants to have enough shares to enable selective at-the-money (ATM) for capital raises. Second, he wants to execute opportunistic deals such as selective mergers and acquisitions.
Most importantly, he wants to accommodate future share splits since he expects the stock to go parabolic, mirroring the performance of Ethereum.
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The other key catalyst for BitMine’s stock price will be the upcoming US consumer inflation report, which will come out on Tuesday. This report will help to determine whether the Federal Reserve will consider more cuts this year, considering that the labor market remains tight. More cuts will be bullish for the Ethereum price, which is a good thing for BitMine.
Meanwhile, the Supreme Court will deliver a ruling on Donald Trump’s tariffs later this week, a move that will have a mild impact on the market. A decision to end these tariffs will have a minimal impact because Trump has other tools to use and implement his tariffs.
Traders will also react to potential Ethereum accumulation and staking by the company. It has already staked tokens worth $3.3 billion, meaning that it will be earning over $92.7 million a year on these rewards.
BitMine Stock Price Technical Analysis
The daily timeframe chart shows that the BMNR stock price has remained in a tight range in the past few weeks. As a result, it is consolidating at the 50-day and 25-day Exponential Moving Averages (EMA).
A closer look shows that it has formed a symmetrical triangle pattern whose two lines have converged recently.
Therefore, there is a likelihood that the stock will have a big move this week in either direction. A bullish breakout may see it soar from the current $30 to $40, its highest point on Dec. 10. On the other hand, a move below the lower side of the triangle will point to more downside.
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