BitMine's book loss is nearly $8 billion, yet BlackRock increased its holdings by 165.6%. Why is BMNR still being supported?

On February 13, despite the recent overall pressure on crypto assets, BMNR’s stock price experienced an opposite rebound. According to public disclosures, global asset management giant BlackRock increased its stake in BitMine by 165.6%, a move that quickly boosted market sentiment. Following the announcement, BMNR rose nearly 2% in trading that day, becoming one of the few blockchain-related concept stocks to strengthen.

Market analysts believe that BlackRock’s increased investment is not a short-term gamble but a recognition of BitMine’s long-term strategy. Although the company still has approximately $8 billion in unrealized paper losses, it has continued to buy assets during the sharp decline in Ethereum prices and has improved capital efficiency through staking. Earlier this week, BitMine invested about $84 million to further increase its Ethereum holdings, demonstrating a firm belief in its medium- to long-term value.

Company Chairman Tom Lee defended the current paper losses, stating that the core of the investment is not about precise bottom-fishing but about capturing structural opportunities. He pointed out that recent market volatility partly stems from the dramatic fluctuations in gold prices, and this cross-asset linkage has affected risk appetite, bringing new valuation elasticity to BMNR.

In addition to asset allocation strategies, BitMine is also targeting younger user groups. The company recently partnered with well-known content creator MrBeast, aiming to reach Generation Z and Alpha through his influence. Tom Lee believes that each generation will have its own “financial entry point,” and MrBeast could become a key figure for this generation. BitMine hopes to leverage this to enter digital asset education and application scenarios, creating new growth opportunities for BMNR.

Although BMNR has still declined about 10% this month, BlackRock’s increased holdings, Ethereum strategic reserves, and focus on younger demographics are reshaping market expectations for this Ethereum treasury company. Future stock performance will likely depend more on the crypto cycle and the speed of its new business implementation.