Hello, my friends! Welcome back to my latest analysis report.
In this report, I'll be discussing whether Bitmine Immersion Technologies (BMNR) is going to fail soon.
Tom Lee's BMNR is no stranger to us. Nonetheless, it is currently under a harsh crypto winter, with its mNAV sitting at at 0.906211 as of 1 July 2026. This means the company is currently trading at a discount to its net asset value. Despite that, BMNR aggressively raised capital through a $280M public offering of 9.5% Series A Perpetual Preferred Stock. Worse still, the shares have plummeted from a 52-week high of $161 to around $14, a staggering drop of over 90%.
So there are lots of bad news for BMNR, are we witnessing the bankruptcy of the company? Or there will be a great turnaround?
Tom Lee's Staking Flywheel
BMNR announced on 29 June 2026 that its Ethereum (ETH) holdings reached 5.7 million tokens, representing roughly 4.7% of the total supply. Over 4.8 million ETH are already actively staked via their MAVAN (Made in America Validator Network) infrastructure.
By staking ETH via MAVAN, Tom Lee's staking flywheel effectively transforms BMNR from a passive holding company into a compounding yield machine. This roughly generates $211M in annualized staking rewards, i.e. around $600,000 per day. This allows the company to organically accumulate ETH through staking rewards.
Besides, Tom Lee did not build the MAVAN only to handle BMNR's internal balance sheet, he also designed the infrastructure with a goal to expand it into a institutional grade Staking-as-a-Service (SaaS) provider for external financial institutions. The beauty of MAVAN is that other major financial institutions or entities can safely and confidently stake their ETH using MAVAN since MAVAN is structured as a Made in Amercia compliant network. As adoption grows, BMNR will generate high-margin, recurring revenue by charging a service fee on those institutions.
Inclusion into Russell 1000
On 26 June 2026, BMNR is included to the Russell 1000 Index. The inclusion is definitely a catalyst for its share price since institutional funds are required to buy BMNR if they benchmarks against the Russell 1000 Index. This could help provide a buying power which in turn absorb part of the selling pressure. Moreover, entering the Russell 1000 Index marks BMNR’s growing market significance and elevates its profile within the broader financial community.
That being said, the life of BMNR is still hinged on the price action of ETH. The whole staking flywheel relies on a stable market. If the crypto winter deepens and ETH drops further, the engine of the flywheel stalls. For instance, because the staking rewards are paid in ETH, a price crash would shrink the dollar value of the annualized revenue. If that happens, BMNR might struggle to generate sufficient cash to cover its dividend obligations to the preferred stockholders.
What are your thoughts? Let me know where you find any flaws in the comments below!
