Bitmine Spends $46 Million on Share Buybacks
Ethereum treasury company Bitmine Immersion Technologies has repurchased $46 million of its own shares, choosing buybacks over accumulating more ether as the crypto market pulled back. The move was disclosed in the company’s latest update, with Chairman Tom Lee framing the decision as a way to capture value while digital assets hold up better than AI-linked equities.
The buyback is notable because treasury firms typically prioritize token purchases. Bitmine’s pivot suggests management sees its own stock as undervalued relative to the ether it holds, a signal worth watching for other crypto balance-sheet companies.
Tom Lee: Crypto Has Outperformed AI Stocks in the Pullback
Lee said crypto has held up better than AI stocks during the recent market decline, a claim that carries weight given his long history as a market strategist. The comparison matters because AI equities have been the dominant growth trade of 2026, and any rotation away from them could redirect capital toward digital assets.
Ether was trading at $2,326.75 on 25 October 2026, down 1.22% on the day, according to market data. That level remains well below the cycle highs but has shown resilience relative to prior drawdowns.
Why Buybacks Beat Ether Purchases for Bitmine
Buying back stock reduces the share count, which can lift per-share exposure to Bitmine’s ether holdings without adding to the token position. For a treasury company trading at a discount to net asset value, buybacks are a more efficient use of cash than buying more ETH at current prices.
The $46 million repurchase also signals confidence in the company’s balance sheet. Bitmine did not disclose the average price paid or the number of shares acquired, leaving investors to infer the discount to NAV from future filings.
Ether at $2,326 Tests Treasury Firm Economics
Ether’s 1.22% decline on 25 October 2026 puts pressure on treasury firms that accumulated tokens at higher levels. Bitmine’s decision to buy back shares rather than ether suggests management views the equity as the cheaper asset at current prices.
If ETH continues to slide, the discount to NAV could widen, making further buybacks more attractive. Conversely, a rebound in ether would validate the treasury strategy and narrow the gap between share price and token holdings.
What to Watch in Bitmine’s Next Filing
Investors should watch Bitmine’s next regulatory filing for the average buyback price and the resulting share count. A confirmed discount to net asset value would support Lee’s argument that buybacks are the better capital allocation.
Ether’s move above or below $2,326.75 will also be key. A sustained break lower could force other treasury firms to follow Bitmine’s lead, while a recovery would test whether the buyback was well timed.
Sources: coindesk.com · Yahoo Finance · Benzinga · unchainedcrypto.com · Stocktwits