Top Bitcoin mining stocks like Mara Holding (NASDAQ: MARA) Riot Blockchain (NASDAQ: RIOT) and CleanSpark (NASDAQ: CLSK) have moved sideways while the price of Bitcoin has shot higher. If investors are wondering why the sideways movement, there are huge S-3 filings in place on these Bitcoin miners as they are pumping shares into the market and the number of outstanding shares grows monthly. Looking at CLSK, the O/S was 56 million in 2022 and now the O/S is 271 million in 2024. This represents a 380% increase in share count over a 2 year period but the market cap has grown from $200 million to close to $4.0 billion. The value of the miners is increasing but the price performance is a function of supply. Bitcoin mining is a commoditized business where the lowest cost producers tend to consolidate and acquire other companies. BitMine Immersion Technologies (OTCMKTS: BMNR) is looking more like a consolidation play with its recent overtures of and uplisting talk.
Before this latest filing BMNR was just another undervalued Bitcoin play mentioned in our initial coverage in May. When we look at them in May they were a tiny operation that had a focus on their oil cooling technology which allows them to overclock their machines to squeeze another 20%+ performance out of the machines. Their market cap has remained relatively unchanged since May while they tripled their rig count and just announced a 413% increase in revenues. In a November podcast with Beasts of Wallstreet the CEO, Jonathan Bates, made clear his intentions to uplist to NASDAQ as they meet the requirements except the number of non-affiliated shareholders. He also alluded to the fact that he was working on a “definitive deal sometime in the near future” at the 41:00 min area and then followed up later that he’s completely open to consolidating with other companies. He said “I would love to be an acquirer” in the 47:00 min area but then a couple min later confessed to having good discussions with SPAC like entities. When asked about overhang he quite confidently indicated “there is none.”
The elephant in the room is the reverse stock split which some investors might panic and hit the sell button without thinking, but they would miss out on what looks like an incredible opportunity. The company filed a 14-C on December 16, 2024 with the sole intention of reversing the price to the point where it could list on the NYSE. They don't need money except to acquire more hardware and that could be financed. The minimum notice for an uplisting is 20 business days.
Investment Summary
Many investors might not realize that if BMNR makes it to the NYSE as they are telegraphing it will be the first Bitcoin Mining company on that exchange. Investors need to think about the optics. Investors should also keep in mind the lowest raise was at $1.25 which is almost a triple from the current price. They also announced a share buyback plan. From a value perspective, it just makes too much sense for another miner to buy BMNR at rock bottom valuations to get the accretive cash flow of the operation or they might thrive as the only Bitcoin miner on the exchange and execute a consolidation play.
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Disclosure: Insider Financial and its owners do not have a position in the stocks posted and have posted this article for free without editorial input. A guest contributor wrote this article and solely reflects his opinions.
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