- BitMine stock price has held steady in a narrow channel since February.
- The company has become highly undervalued amid the ongoing retreat.
- Ethereum has highly bullish technicals, pointing to a surge.
Digital Asset Treasury (DAT) stocks are in a deep slumber. BitMine stock price has gone nowhere in the past seven weeks. BMNR was trading at $20, giving it a market capitalization of over $9.52 billion. This article highlights some of the top reasons why it may stage a strong comeback soon.
BitMine Stock Price to Rebound as It Has Become a Bargain
One of the top catalysts for the BMNR stock price is that the company has become a bargain.
Data shows that it has a market capitalization of over $9.52 billion. In contrast, the market valuation of all its Ethereum holdings is $9.55 billion.
In addition to Ethereum, BitMine has 196 Bitcoin worth over $13.9 million, a $200 million stake in Beast Industries that may continue growing in its next funding round.
Most importantly, BitMine has an $83 million stake in EightCo, a company that holds WLD tokens and Ethereum tokens worth over $23 million. It has no debt and has over $1.2 billion in cash.
Therefore, there is a likelihood that BitMine will go through a valuation reset in the coming months that may push it much higher in the coming weeks or months.
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BMNR Stock to Benefit From Its Staking
Meanwhile, unlike Michael Saylor’s Strategy, BitMine is making money even as Ethereum remains under pressure. It is achieving that by staking its Ethereum holdings.
Data shows that Ethereum has a staking yield of about 3%. Staking all its Ethereum holdings today would bring in over $286 million in revenue in the next 12 months.
The company is also investing its cash in short-term government bonds, which will remain substantially high now that inflation is set to keep rising. Data shows that the 10-year yield rose to 4.38%, meaning that its cash may bring in over $50 million this year
Ethereum Fundamentals are Improving
BitMine stock price may also benefit from the improving fundamentals. Artemis data shows that the supply of stablecoins in Ethereum jumped to over $170 billion, with USDT and USDC gaining momentum.
The network handled over $1.02 trillion in stablecoin volume in the last 30 days, while the number of stablecoin addresses jumped to 6.2 million. It handled over 41.1 million in stablecoin transactions in the same period.
Additionally, data shows that its RWA growth continues to gain momentum. Its RWA assets jumped by 5% to $15.4 billion, while the number of RWA holders jumped to 160,000. This is notable as analysts believe that RWA is the next big thing in the crypto industry.
Spot Ethereum ETFs have also staged a comeback, adding over $124 million in assets this month after four consecutive months. These funds now holds $12.3 billion in assets, which is equivalent to 4.8% of its market capitalization.
BitMine Share Price Prediction: Technical Analysis
The other main reason why the BMNR share price may rebound in the near term is its technicals. It has remained in a narrow range in the past few weeks, a sign that it is in the accumulation phase of the Wyckoff Theory.
The stock has also formed a falling wedge pattern, which is made up of two descending and converging trendlines. Also, the Percentage Price Oscillator (PPO) and the Relative Strength Index (RSI) have continued rising.
Therefore, the stock will likely rebound in the coming weeks, potentially to the key resistance level at $30, followed by $50.
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