BitMine Immersion Stock Drops 23% Premarket After Soaring 3065% Last Week

BitMine Immersion Technologies Inc. fell 23% in premarket trading after soaring 3065% last week.

BitMine currently mines Bitcoin and Ethereum, with a focus on long-term crypto accumulation, and operates in low-cost energy regions such as Trinidad, Pecos (Texas), and Silverton (Texas) to enhance operational efficiency and profitability. The proceeds from the stock issue will be used to accumulate Ethereum (ETH) as a core treasury asset. BitMine plans to adopt ETH as its primary treasury reserve asset, while still advancing its core mining and advisory operations. This Ethereum-focused strategy highlights the growing convergence between public equity markets and digital asset investment strategies and is likely to appeal to investors seeking regulated equity exposure to ETH’s long-term upside without directly holding the cryptocurrency.

While the bold shift in the company’s financial strategy  is exciting, investors must be cautious about investing in BitMine stock. The company is a micro cap stock with a considerable amount of risk. Our analysis of BitMine Immersion Technologies along key parameters of Growth, Profitability, Financial Stability, and Downturn Resilience shows that the company has a very weak operating performance and financial condition, as detailed below. That said, if you seek upside with lower volatility than individual stocks, the Trefis High Quality portfolio presents an alternative – having outperformed the S&P 500 and generated returns exceeding 91% since its inception. Note that the financials analyzed below reflect the company’s past operations and may not entirely capture the implications of this recent strategic pivot.

How Does BitMine Immersion Technologies’ Valuation Look vs. The S&P 500?

Going by what you pay per dollar of sales or profit, BMNR stock looks very expensive compared to the broader market.

• BitMine Immersion Technologies has a price-to-sales (P/S) ratio of 14.4 vs. a figure of 3.1 for the S&P 500

How Have BitMine Immersion Technologies’ Revenues Grown Over Recent Years?

BitMine Immersion Technologies’ Revenues have grown considerably over recent years.

• BitMine Immersion Technologies has seen its top line grow at an average rate of 295.4% over the last 3 years (vs. increase of 5.5% for S&P 500)
• Its revenues have grown 158.4% from $1.8 Mil to $4.6 Mil in the last 12 months (vs. growth of 5.5% for S&P 500)
• Also, its quarterly revenues grew 70.2% to $1.5 Mil in the most recent quarter from $0.9 Mil a year ago (vs. 4.8% improvement for S&P 500)

How Profitable Is BitMine Immersion Technologies?

BitMine Immersion Technologies’ profit margins are considerably worse than most companies in the Trefis coverage universe.

• BitMine Immersion Technologies’ Operating Income over the last four quarters was $-3.0 Mil, which represents a very poor Operating Margin of -64.2%
• For the last four-quarter period, BMNR Net Income was $-3.6 Mil – indicating a very poor Net Income Margin of -77.8% (vs. 11.6% for S&P 500)

Inflation Shock (2022)

• BMNR stock fell 88.0% from a high of $3.74 on 22 March 2022 to $0.45 on 10 May 2023, vs. a peak-to-trough decline of 25.4% for the S&P 500
• The stock fully recovered to its pre-Crisis peak by 6 June 2025
• Since then, the stock has increased to a high of $7.55 on 8 June 2025 and traded at around $4.30 (Before the recent large moves.)

Putting All The Pieces Together: What It Means For BMNR Stock

While the company’s strong growth and innovative business model are positives, the stock carries a considerable amount of risk, given its weak profitability and downturn resilience, and its small market cap which could make it much more volatile. While you would do well to avoid BMNR stock for now, you could explore the Trefis Reinforced Value (RV) Portfolio, which has outperformed its all-cap stocks benchmark (combination of the S&P 500, S&P mid-cap, and Russell 2000 benchmark indices) to produce strong returns for investors. Why is that? The quarterly rebalanced mix of large-, mid- and small-cap RV Portfolio stocks provided a responsive way to make the most of upbeat market conditions while limiting losses when markets head south, as detailed in RV Portfolio performance metrics.