The Ethereum treasury firm is not worried, about selling its stuff even though it is losing a lot of money on paper and the value of its stock is going down fast. The Ethereum treasury firm says it has no reason to get rid of everything quickly.
Things are getting really bad for BitMine Immersion Technologies. The situation is not looking good all for BitMine Immersion Technologies. BitMine Immersion Technologies is, in a lot of trouble.
The company that handles money for Ethereum started by Thomas Lee is facing problems. They have a lot of Ethereum, 4.29 million Ethereum, which they bought for around $16.4 billion. Now Ethereum is worth less it went below $2,000 on Thursday. This means the companys Ethereum is now worth $8.4 billion. They are looking at losing $8 billion. The company is in a spot because the value of Ethereum dropped. Thomas Lees company has a stake, in Ethereum and when Ethereum loses value the company loses money too.
The stock of BMNR has gone down a lot on paper it is a 49 percent loss. Paper losses are not the same as losses but the market is not being nice to the people who own BMNR stock. The BMNR stock has gone down 88 percent since it was at its point, in July and it hit a new all-time low on Thursday. It went down another 7 percent that day.
The "Diamond Hands" Playbook
If you are expecting Lee to have a sale, with really low prices that is not going to happen with Lee. Lee is not going to give you a fire sale.
The person said something to the public. He wanted to make it clear that he does not have to sell any Ethereum at this time. The reason for this is that BitMine does not have any debt that it has to pay back now. Also there are no rules that say they have to sell Ethereum. So BitMine is in a position to deal with the ups and downs of the crypto market. At the time BitMine can still make money from things that happen regularly and, from staking rewards. Ethereum is something that BitMine can hold onto while all of this is happening.
The company has a lot of money saved up which's a good thing. They have $538 million in cash. They have also invested over 2.9 million of their Ethereum or ETH which gives them some extra money. This extra money helps a little when the value of Ethereum goes down. The money they get from investing their Ethereum is like a safety net that brings in money all the time. Most other companies that deal with cryptocurrency do not have this safety net. The Ethereum that the company has invested brings, in money regularly which is a help.
The fact that BitMine does not have debt covenants is really important. BitMine is different from MicroStrategys Bitcoin plan. MicroStrategy used things like notes and margin-like structures.. Bitmine says it does not have to worry about being forced to sell its Bitcoin. There are no margin calls that BitMine has to deal with. No lender is pushing BitMine to do anything. At least not at this point. BitMine has freedom, with its Bitcoin because of this.
People do not think that the market is going to do. The market is not doing what people thought it would do. This is why people are not buying into the market. The market is just not what people want it to be.
People look at the market. They do not like what they see. This is why they are not buying the market. The market is the market. It is not doing well.
The issue with BitMine is not about the Ethereum price. It is about the fact that people are losing faith in the story of BitMine. When BitMine first started buying up Ethereum it wanted to be like MicroStrategy for Ethereum. BitMine wanted to be a company that people could invest in to get a piece of Ethereum. The idea was simple: buy Ethereum. Hold onto it hope that Ethereum becomes more popular and gets approved for an exchange-traded fund and make money from rewards, over time. BitMine thought this would be a way to make money from Ethereum.
Ethereum has not been doing well compared to Bitcoin lately. Bitcoin has been able to stay above the levels that it needs to but Ethereum has had a hard time going above two thousand dollars. There are a reasons for this.
* Ethereum has a lot of layer-2 things going on which is causing some problems
* the fees for using Ethereum are getting lower
* people are getting more interested in things that're only related to Bitcoin.
All of these things are making people feel bad, about Ethereum. Ethereum is still having a time and Ethereum is not doing as well as Bitcoin.
This company put an amount of money $16.4 billion on Ethereums future. Now that things are not going well it is a problem. The stock price of BMNR went down by 88 percent. This means people who invest in BMNR are losing faith, in Ethereum and also in the way the company handles its money, which's to put everything into one thing.
So I am wondering what happens next? I really want to know what is going to happen after this. What happens next is something that I'm very curious, about. I just can not wait to find out what happens next.
BitMines survival now depends on two things: time and the price of Ethereum going up. If Ethereum gets back to the price of three thousand dollars to four thousand dollars in the few months Lee will look like a smart person who waited out the tough times.
If Ethereum keeps going down, to fifteen hundred dollars or even lower people will start to doubt what they are being told. They will think that the idea of not having to sell is not true the people who own part of BitMine and are watching their money disappear.
The money that the company gets from staking gives them some time but they have $538 million in cash and that will not last forever. If the company needs to pay for things it needs to run or if it has to pay back money it borrowed or if the people who own shares of the company want their money back then the $538 million, in cash will run out. The company has to think about the staking income and how it can help them with these things. The staking income is important because it gives the company some money to use.
Tom Lee is still doing what Tom Lee has always done. He is staying very positive about this. It is hard to say if Tom Lee really believes in this or if Tom Lee is just not willing to change his mind. It will all depend on what happens to the price of ETH, in the six months.
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