Tom Lee's BitMine Announces First Dividend! BMNR Stock Drops 80% But Still Increases ETH Holdings

BitMine Immersion Technologies (BMNR) is a leading digital asset financial company focused on Ethereum, chaired by Wall Street veteran Tom Lee. The company announced a net profit of $328 million for fiscal year 2025, with fully diluted earnings per share (EPS) of $13.39. BMNR stock has declared its first annual dividend of $0.01 per share.

Strategic Signal Behind BMNR Stock’s First Dividend

(Source: Bitmine)

BitMine announced its first annual dividend of $0.01 per share, marking BMNR stock’s shift toward traditional value return mechanisms. Although the dividend amount is modest, this move carries significant symbolic meaning in the cryptocurrency industry. Previously, almost all major crypto companies opted to use funds for expansion and digital asset accumulation instead of distributing cash to shareholders. BitMine’s decision makes it one of the first major crypto asset management companies to directly distribute funds to shareholders.

Tom Lee emphasized BitMine’s strategic positioning for 2026, noting that the dividend reflects a “commitment to creating shareholder value.” This commitment is particularly important in the current market environment. Ethereum prices have remained weak, with Ethereum (ETH) trading at around $2,730 as of November 21, 2025, near multi-month lows following a major crypto market sell-off.

The dividend strategy aims to attract conservative investors, boost shareholder loyalty, and demonstrate confidence amid market volatility. Traditional investors often value stable cash flow returns over pure asset appreciation. By introducing a dividend mechanism, BitMine is attempting to position itself as a hybrid company with both growth and value investment characteristics. This strategy could help BMNR stock attract institutional investors who are otherwise cautious about pure crypto speculation.

However, the sustainability of dividend payouts depends on the recovery of Ethereum (ETH). If ETH prices remain weak, BitMine’s unrealized losses could further increase, affecting the company’s ability to maintain dividends. Investors need to closely monitor the Ethereum market and how BitMine balances asset accumulation with shareholder returns.

mNAV Drops Below 1.0x, Creating a Bargain Opportunity

The biggest challenge facing BMNR stock is its market capitalization falling below its net asset value (mNAV) at less than 1.0x. The mNAV multiple measures the ratio of the company’s market value to the fair value of its underlying assets (primarily its Ethereum holdings, net of liabilities). An mNAV below 1.0x means the stock is trading at a price lower than the value of its crypto reserves—in essence, investors are gaining Ethereum (ETH) exposure at a “discount.”

BitMine holds about $11.53 billion (over 3.4 million Ethereum plus a small amount of Bitcoin), but at current prices, its treasury carries about $4.52 billion in unrealized losses. This massive loss is mainly due to Ethereum’s steep price decline from its peak. The stock saw a slight intraday increase, trading at around $26.49, down about 80% from its peak of $135 in July 2025, but still up 258% year-to-date.

This has led to a widespread devaluation of Ethereum treasury companies, with the industry’s total market cap dropping from $176 billion in July to about $99 billion now. BitMine is the world’s largest publicly traded Ethereum treasury, aiming to hold 5% of total ETH supply, currently holding around 3.4 million ETH—but facing huge unrealized losses.

Similar pressures have impacted peers like MicroStrategy (MSTR), the largest crypto fund. Over $10 billion in recent financing was used to purchase Ethereum, exposing shareholders to risk during this market downturn. However, from another perspective, mNAV below 1.0x also creates a potential investment opportunity. If investors believe in Ethereum’s long-term value, buying BMNR stock at a discount is equivalent to gaining ETH exposure at a lower cost.

Contrarian Purchase of 21,537 ETH Demonstrates Boldness

(Source: Lookonchain)

Data from analytics platform Lookonchain shows that BitMine has purchased 21,537 ETH, continuing its Ethereum accumulation strategy despite declining stock prices and billions in unrealized balance sheet losses. Lookonchain reported that a wallet associated with BitMine received an ETH transfer from institutional broker FalconX. This transaction brought BitMine’s total ETH holdings to over 3.5 million, accounting for about 3% of the circulating supply, making it one of the largest corporate holders of Ethereum.

This purchase took place against the backdrop of a sharp decline in Ethereum’s price over the past month, causing BitMine to incur billions in paper losses and increasing downward pressure on its stock price. The company stated that these purchases are part of its “strategic Ethereum reserve” plan. This contrarian accumulation strategy during market panic demonstrates Tom Lee’s strong confidence in Ethereum’s long-term value.

Three Main Reasons Behind BitMine’s Contrarian Accumulation

Valuation Opportunity: Ethereum’s price near a multi-month low of $2,730 offers a lower entry cost

Strategic Goal: Targeting 5% of total Ethereum supply requires ongoing accumulation

Staking Yield: Potential to generate 3-5% annual yield via MAVAN staking in the future

BitMine’s representative Tom Lee stated that the recent market downturn was caused by broader market mechanisms rather than structural weakness. Lee referenced the liquidity shock in October, which wiped out tens of billions in leveraged positions in the crypto market. He compared this liquidation to previous market fluctuations, including the post-FTX de-leveraging in 2022. Lee said the company expects a V-shaped recovery once the market stabilizes.

Despite the pressure, Lee continues to urge investors to buy Ethereum on dips, pointing out that a record $47 billion inflow into US equity ETFs is a bullish signal for risk assets. He believes market cap compression is a buying opportunity, and staking operations are expected to boost returns.

MAVAN Project Ushers in a New Era of Staking Yields

On November 21, BitMine announced its “Made in America Validator Network” (MAVAN) project, a staking infrastructure set to launch in early 2026. The company has selected three pilot partners to test its validator operations. This will allow its Ethereum holdings to potentially generate an annual yield of 3-5%, diversifying investment beyond mere accumulation.

Lee stated that BitMine plans to expand the MAVAN project with at least one pilot partner and infrastructure provider. “We are committed to being the premier platform for native Ethereum staking, and we are proud to build alongside the best partners,” said Lee in a statement. “In the long run, our strategy will maximize long-term shareholder interests.”

If BitMine stakes its entire ETH holdings, the company could earn annual rewards, thereby creating a sustainable income stream. With 3.5 million ETH, assuming a 4% annual staking yield, BitMine could earn an additional 140,000 ETH per year. At current prices, this equates to approximately $380 million in annual revenue. This move would transform BitMine from a passive Ethereum reserve holder to an active participant in the Ethereum proof-of-stake network.

The “Made in America” positioning of MAVAN also has strategic significance. In the current geopolitical environment, emphasizing infrastructure localization may help BitMine gain favor with regulators and institutional investors. BMNR stock has received support from heavyweight investors such as ARK Invest’s Cathie Wood, DCG, Founders Fund, Galaxy Digital, Pantera Capital, Kraken, Bill Miller III, and Tom Lee himself, providing a strong vote of confidence for the company’s long-term development.