BitMine’s stock price was stuck in a tight range after the company announced a $200 million investment in MrBeast’s company, as investors awaited the results of a key shareholder vote.
Summary
- BitMine stock remained in a tight range after the company invested in Beast Industries.
- The company’s shareholder vote ended on Wednesday and the results are coming soon.
- Technicals suggest that the Ethereum price will rebound in the near term.
BitMine, led by Tom Lee, made a significant investment in Beast Industries, underscoring the convergence of digital finance and the creator economy.
Beast Industries, which MrBeast runs, operates a media platform, consumer products like Feastables, and a philanthropic arm. It is also planning to launch a decentralized finance platform, which will likely operate on Ethereum (ETH).
BitMine will benefit from this investment, given the potential for growth, as MrBeast (whose real name is James Donaldson) is one of the most popular content creators in the world. Additionally, his involvement may help boost Ethereum’s price in the long term, which would increase the value of its assets.
BitMine has become the world’s largest Ethereum holder, holding over 4.16 million coins valued at over $133 billion. Its goal is to eventually own 6 million coins and earn passive profits from staking. It has already begun staking, a move that will generate millions of dollars in annual revenue.
Meanwhile, BitMine stock will also react to the results of a recent vote on a measure to increase its authorized shares from 500 million to 50 billion. In a statement, the company said the results will be released soon, once counting is complete, possibly at its shareholders’ meeting.
Lee argued that the vote will help the company raise money in the public market through at-the-money activities. He also said that the vote will help it make opportunistic investments and the ability to execute stock splits.
BitMine stock will also rebound as Ethereum rallies. As we wrote recently, there is a good chance the Ethereum price will surge to $4,000 as it has formed an inverse head-and-shoulders pattern on the weekly chart.
BitMine stock price technicals points to a breakout
The daily timeframe chart shows that the BMNR stock price has remained in a tight range in the past few weeks. As a result, it has gradually formed a symmetrical triangle pattern whose two lines are about to converge.
In most cases, this convergence results in a breakout in either direction. In this case, however, the stock has numerous catalysts that may lead to a bullish breakout.
If this happens, the next key target level to watch will be at $65.46, its highest level in October last year. This target is about 100% increase from the current level.
