With its stock trading below net asset value, BitMine has chosen to focus on buybacks instead of further growing its ETH reserve.
BitMine Immersion (BMNR), a Bitcoin mining company and Ethereum’s largest publicly traded holder, has announced the approval of an open-ended $1 billion stock buyback program to repurchase its outstanding shares through open market or negotiated transactions.
With shares trading below the company’s net asset value (NAV), BitMine has opted to repurchase its stock rather than allocating more capital to expand its ETH reserve, at least for now.
The company’s NAV per share is estimated at $22.76, while its crypto holdings stand at 625,000 ETH (~$2.35 billion) and 192 BTC (~$22 million), according to a press release on Monday. Rather than continue accumulating ETH at elevated prices, BitMine is using the NAV gap as a trigger for buybacks, aiming to increase per-share value and investor exposure to Ethereum reserves.
