Markets, Bitmine, Ether, News The Tom Lee-led company signaled an intent to possibly repurchase stock should the share value decline below the net asset value of its ether holdings.
Ether treasury firm BitMine Immersion Technologies (BMNR) has said it will repurchase up to $1 billion of its outstanding shares as part of a new open-ended buyback program approved by its board.
The move comes as BitMine’s crypto and cash holdings have ballooned to $2.77 billion, including 625,000 ETH valued at $2.35 billion and 192 bitcoin. The firm also holds $401.4 million in unencumbered cash, according to a press release.
The repurchase plan would likely be leveraged once the company’s share price drops sizably below the net asset value per share, currently estimated at $22.76. Down another 9.2% in premarket action, the stock is currently changing hands at $31.70, off from a bubbly high of $161 about three weeks ago.
The announcement comes amid what Chairman Thomas Lee described as the firm’s pursuit of “the alchemy of 5%,” a reference to BitMine’s long-term ambition to accumulate 5% of ETH’s supply.
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