BMNR stock price remains under intense pressure after falling by nearly 90% from its peak in July last year. BitMine was trading at $20.4, with its market capitalization falling below $10 billion. Still, Tom Lee believes that the stock will likely rebound in the future.
Why Tom Lee is Bullish on the BMNR Stock
In an interview with CNBC, Tom Lee explained the key reasons why he is still bullish on the BitMine stock price despite the ongoing Ethereum price crash.
First, unlike Michael Saylor’s Strategy, which has over $8 billion in debt, BitMine does not have any debt, meaning that it can sustain a substantial Ethereum crash.
Second, the company holds over 4.3 million Ethereum tokens, currently worth over $8.6 billion. Because of staking, these coins earn a 3% return, worth over $250 million a year. The staking revenue is helping it to offset the ongoing Ethereum price crash.
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Third, the company has over $690 million in cash, which is invested in government bonds earning over $27 million in returns a year. Therefore, Tom Lee estimates that the company makes over $1 million a day.
Most importantly, Tom Lee believes that ETH price will rebound as it always rebounds from its major drawdowns. It has had 7 drawdowns of over 60% since its launch and it always rebounds.
Ethereum has some of the best fundamentals in the crypto industry, with its transactions and fees rising. Its transactions jumped by over 37% in the last 30 days to 70 million. Its active addresses jumped by 38% to 15.1 million, while the network fees soared by 81% to $20 million.
Ethereum has become a major player in all sectors, including the booming Real-World Asset (RWA) tokenization industry, where it has been selected by companies like JPMorgan and UBS.
BitMine Stock Price Technical Analysis
BMNR stock chart | Source: TradingView
The daily timeframe chart shows that the BMNR stock price has come under pressure in the past few months. It has moved below the important support level at $24.5, its lowest level in November last year.
BitMine share price has remained below the 50-day and 100-day Exponential Moving Averages (EMA). It also moved below the Supertrend indicator.
Therefore, the stock will likely remain under pressure for now and then rebound later this year. A rebound could push it to the key resistance level at $65, its highest level in October.
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