BitMine stock price has remained inside a descending channel since May this year. BMNR was trading at $14.35, up over 40% from its May high. So, will the stock rise or fall ahead of its earnings on Friday this week?
BitMine Stock on Edge Ahead of Earnings
BMNR stock has been in a strong downward trend over the past 12 months, driven by the ongoing Ethereum retreat and dilution. It has increased the number of outstanding shares from 234 million in September last year to 493 million today.
On the positive side, this dilution is about to end, as Tom Lee is set to conclude his Ethereum accumulation strategy. It has already bought 5.7 million coins in the past 12 months and has about 300k coins more to buy. Lee has used dollar-cost averaging (DCA) to execute these purchases.
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The next key catalyst for the BMNR stock price will be its Ethereum purchases, which are expected later today. After this, the company will publish its earnings on Friday.
These results are important because they will shed more light on its staking revenue and its unrealized losses. Its large unrealized losses will be offset by the staking revenue it generates. In its most recent results, the company reported an unrealized loss of over $9 billion, a figure that has worsened due to falling Ethereum prices.
Ethereum has faced some unprecedented challenges this year. Its ETF outflows have jumped, while its ecosystem growth has stalled. For example, the total value locked (TVL) has dropped to $37 billion.
Its stablecoin market capitalization has dropped to $154 billion from a high of $164 billion. Also, its chain fees have fallen to $92 million this year from $523 million last year. Its app revenues have dropped to $417 million this year from $1.09 billion last year.
BMNR Stock Price Forecast
The daily chart shows that the BMNR stock has formed a descending channel in the past few weeks. It formed a descending channel and has just retested the upper side.
The stock remains below the key resistance level of $17.20, its lowest level in February this year. It has also slumped below all moving averages, a sign that bears are in control.
Therefore, there is a likelihood that the stock will remain under pressure in the near term, with the next target to watch being at $10. A move above the key resistance at $17.20 will signal more gains.
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