The Purchase

BitMine Immersion Technologies added $195 million worth of Ethereum to its stockpile last week. The company bought 69,822 Ethereum as its stock price fell to a four-month low.

The purchase increased BitMine's Ethereum holdings by 1.9% from the prior week. It was the company's second-smallest buy of the year. At times, BitMine has added as much as 373,000 Ethereum to its reserves.

BitMine now owns 3% of Ethereum's total circulating supply. That equals 3.63 million Ethereum valued at $10.1 billion based on current prices.

The Stock Move

BitMine shares jumped 10% Monday to $28. But after falling as low as $24.33 last week, the stock remains down 43% over the past month.

Several crypto-buying firms, including Strategy, have faced similar declines.

The Bold Timing

"It's quite a bold move, given the sentiment toward [crypto treasury firms] at the moment," said James Butterfill, CoinShares head of research. "It does suggest that they are seeking strategic moments, from a price perspective."

Crypto-buying firms are facing elevated scrutiny as their market caps teeter toward the value of their digital assets.

The Finances

BitMine didn't explain how it funded the latest purchase. But it reported an increase in unencumbered cash to $800 million from $607 million.

The company still holds 192 Bitcoin plus a $38 million stake in a crypto treasury firm tied to Worldcoin.

The Bottom Line

BitMine's $195 million Ethereum buy stopped the bleeding with shares jumping 10%, though the stock remains down 43% over the past month as crypto treasury firms face scrutiny over market caps nearing their digital asset values.