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 the stock will rebound.
Why Tom Lee is Bullish on the BMNR Stock
In an interview with CNBC, Tom Lee explained the key reasons he remains bullish on Bitmain’s stock price despite the ongoing Ethereum price crash.
First, unlike Michael Saylor’s Strategy, which has over $8 billion in debt, BitMine has no debt, meaning it can withstand a substantial Ethereum crash.
Second, the company holds over 4.3 million Ethereum tokens, valued at over $8.6 billion. Because of staking, these coins earn a 3% return, which is worth over $250 million annually. Staking revenue is helping it offset the ongoing Ethereum price crash.
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Third, the company has over $690 million in cash reserves, invested in government bonds that yield over $27 million in annual returns. Therefore, Tom Lee estimates that the company generates over $1 million in revenue per day.
Most importantly, Tom Lee believes the ETH price will rebound, as it has after 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 38% to 15.1 million, while network fees soared 81% to $20 million.
Ethereum has become a major player across sectors, including the booming Real-World Asset (RWA) tokenization industry, where it has been selected by companies such as JPMorgan and UBS.
BitMine Stock Price Technical Analysis
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, with a rebound likely later this year. A rebound could push it to the key resistance level at $65, its highest level in October.
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