Why Cathie Wood Is buying Bitmine (BMNR) shares despite the Ethereum crash

Ark Invest “Buy the Dip”: $6 Million Injected Into Fear

Amid market turmoil, while most institutional investors are playing it safe, Cathie Wood is hitting the accelerator. According to Ark Invest’s latest trading disclosures, the fund has taken advantage of the recent correction to accumulate approximately 274,358 BMNR shares, representing an investment of nearly $6.25 million.

This move is far from trivial. It comes as BitMine stock has been severely punished by the market, dropping nearly 12% in Monday’s pre-market following the collapse of Ethereum’s price. For Ark, this isn’t just an opportunistic purchase, but a genuine strategic accumulation. By strengthening its positions through its flagship ETFs (notably ARKK and ARKW), Wood is sending a strong signal: she’s betting on seller capitulation and an imminent rebound in high-beta assets.

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BitMine: A $6 Billion Ethereum Treasury Under Pressure

Why is this purchase so surprising? Because BitMine’s balance sheet is frightening for the faint of heart. The company, led by the renowned Tom Lee (Fundstrat), holds one of the world’s largest corporate Ethereum treasuries, with approximately 4.24 million ETH in reserve. A massive exposure that turns into an accounting nightmare when the market reverses.

With Ethereum revisiting the $2,200 zone during the latest crash, BitMine’s unrealized losses (paper losses) now amount to a staggering $6 billion. The market mechanically punishes BMNR stock, treating it as a leveraged proxy on ETH. Yet it’s precisely this correlation that Cathie Wood appears to be exploiting. If ETH rebounds, BitMine’s valuation could outperform the underlying asset thanks to operational leverage and its staking projects.

The Staking and “High Beta” Bet

Beyond simple price speculation, Ark Invest is likely looking at long-term fundamentals. BitMine doesn’t just “HODL”; the company is deploying its MAVAN validator network, which could generate hundreds of millions of dollars in recurring revenue through staking yield. By buying BMNR now, Wood is purchasing Ethereum exposure at a discount to book value, while betting on the company’s ability to transform its passive reserves into active cash flow.

This aggressive move by Ark Invest raises a crucial question for retail investors: has the bottom been reached on Ethereum? If Cathie Wood is right, BMNR could be one of the most explosive vehicles to play the next bull run. But beware, the weekly selling order block could indicate prolonged capitulation on BMNR shares. Nevertheless, the stock is approaching a historical demand zone that has supported the price for several years. Cathie Wood’s strategy could therefore pay off, but more in the long term.

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