Shares of Bitmine Immersion Technologies Inc (AMEX:BMNR) are trading lower Tuesday afternoon, pulling back amid a battle between bullish accumulation and bearish scrutiny. The stock is at a focal point for crypto investors due to its aggressive strategy of amassing Ethereum (CRYPTO: ETH).
What To Know: On Monday, the company announced it had taken advantage of a recent crypto market dip to purchase an additional 202,000 ETH. The recent buys boosted the company’s total holdings to over 3 million ETH, solidifying its position as the largest corporate Ethereum treasury in the world.
With total crypto and cash assets now valued at over $13 billion, Bitmine has passed the halfway mark in its stated goal to acquire 5% of the total ETH supply.
However, this bullish news is tempered by a recent short-seller report from Kerrisdale Capital. The firm recently questioned the long-term viability of Bitmine’s business model and the sustainability of its stock premium, arguing that rapid share dilution to fund crypto purchases is creating investor fatigue.
Bitmine shares may be facing selling pressure on Tuesday amid broader weakness in crypto markets. Ethereum was down about 0.95% at last check, while Bitcoin was down over 1.5% and off about 7% for the week.
Benzinga Edge Rankings: Despite Tuesday’s pullback, Benzinga Edge technical indicators show a positive price trend across short, medium and long-term timeframes.
BMNR Price Action: Bitmine Immersion Techs shares were down 4.15% at $54.52 at the time of publication Tuesday, according to Benzinga Pro. The stock is trading within its 52-week range of $1.92 to $161.00.
Bitmine stock is above its 50-day moving average of $51.37, indicating a bullish short-term trend, while the significant gap to the 100-day moving average at $43.10 suggests strong upward momentum. Key support levels may be found near the 50-day MA, with resistance potentially at recent highs around $54.76.
How To Buy BMNR Stock
By now you're likely curious about how to participate in the market for Bitmine Immersion – be it to purchase shares, or even attempt to bet against the company.
Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.
If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.
Image: Shutterstock
