In a shocking turn of events, BitMine Immersion Technologies saw its stock price plummet 13.64% in pre-market trading on July 29, 2025. The dramatic drop comes as investors express deep skepticism about the company’s ambitious plan to become a major Ethereum staker and holder. What went wrong with this crypto giant’s strategy?
Why Did BitMine Immersion Stock Crash?
The company’s shares took a double hit – falling over 10% during regular trading hours to $35, followed by an additional 15% drop after hours. This dramatic decline occurred despite optimistic messaging from Tom Lee of FundStrat. Three key factors contributed to the sell-off:
- Unclear timelines for Ethereum accumulation
- Lack of named audit partners
- Market doubts about holding 5% of ETH supply
Ethereum Staking Plan Faces Investor Backlash
BitMine’s proposal to create a “made in America validator network” failed to reassure the market. While the company already holds 600,000 ETH (worth over $2 billion), investors questioned:
| Concern | Impact |
|---|---|
| Implied ETH valuation of $60,000 | Seen as overly optimistic |
| Liquidity risks | Potential for major value fluctuations |
| Lack of custody details | Security concerns |
From 3,000% Surge to Steep Decline
Just weeks earlier on July 3, BitMine’s stock had reached a yearly high of $135 after an incredible 3,000% surge. However, the rally collapsed when traders:
- Took profits after full strategy disclosure
- Reacted to Kronos Research’s risk warnings
- Priced in the challenges of large-scale ETH treasury management
What This Means for Ethereum’s Future
The market reaction raises important questions about institutional ETH adoption. While staking offers rewards, BitMine’s experience shows that:
- Transparency matters more than ambition
- Execution plans need to be rock-solid
- Even $2 billion in ETH doesn’t guarantee investor confidence
FAQs About the BitMine Immersion Drop
Q: How much ETH does BitMine currently hold?
A: The company holds approximately 600,000 ETH, worth over $2 billion at current prices.
Q: What percentage of Ethereum’s supply did BitMine aim to control?
A: The company planned to accumulate 5% of Ethereum’s total circulating supply.
Q: Why are investors skeptical about the staking plan?
A: Concerns include unclear custody arrangements, liquidity risks, and the ambitious $60,000 ETH valuation assumption.
Q: How much has BitMine’s stock dropped from its peak?
A: From its July 3 high of $135, the stock has fallen about 74% to $35 (before the additional after-hours drop).
