Ethereum Cathie Wood Bets on Little-Known ETH Treasury Company

Ethereum Bet: Cathie Wood’s Ark Invest Buys BitMine

Cathie Wood, the renowned investor known for her bold bets on disruptive technologies, is making headlines with her latest move in the crypto world. Through Ark Invest’s flagship funds, she has been aggressively buying shares of BitMine Immersion Technologies (BMNR), an under-the-radar company that has recently pivoted to an Ethereum (ETH) treasury strategy. BitMine’s ambitious goal is to acquire 5% of all ETH in circulation, a move that has captured Ark Invest’s attention.

The firm has been adding millions of BitMine shares across its exchange-traded funds, including its flagship Ark Innovation ETF (ARKK), signalling strong confidence in BMNR’s new direction. For investors watching Cathie Wood’s next big play, this could represent a unique opportunity to gain exposure to the growing Ethereum treasury market, though it comes with a high degree of risk.

BitMine’s Dramatic Shift to Ethereum

Based in Las Vegas, BitMine Immersion Technologies, a once small Bitcoin miner, has dramatically changed its focus to Ethereum. In mid-2025, the company announced a significant pivot, raising $250 million through a private stock placement at $4.50 per share to finance an “Ethereum treasury strategy.” The proceeds from this raise were earmarked to purchase Ethereum and make ETH the company’s primary treasury reserve asset.

This bold move was met with a meteoric run in the company’s stock, which briefly spiked over 3,000% in early July, touching $161 at its peak. Despite the rapid rise and subsequent sharp swings, the stock remains up roughly 385% year to date, underscoring the speculative buzz and investor excitement surrounding this dramatic strategy shift. As of early August, BitMine’s treasury held an impressive 833,000 ETH, valued above $2.9 billion, making it, by its own account, the largest Ethereum treasury in the world.

The Financials and Analyst Outlook

While BitMine’s stock performance has been spectacular, its fundamental valuation and financial performance remain a subject of debate. The company’s financial performance has been mixed lately, with its latest quarterly revenue at roughly $2.05 million, mostly from mining and equipment sales, up 68% year-over-year. However, gross margins are thin, and expenses are high due to depreciation, compensation, and operational costs, resulting in a net loss of $0.31 per share.

Valuation-wise, BMNR looks expensive at the moment, with a price-to-sales ratio of 40.5x, significantly higher than the sector median of 3x. Despite this, the company has received a “Strong Buy” rating from the sole Wall Street analyst tracked by Barchart, who set a mean price target of $60. This suggests a potential gain of 60% from its current level, highlighting a divergence between fundamental valuation and speculative growth projections.

Cathie Wood’s Aggressive Accumulation

The news of Cathie Wood’s aggressive buying has been a major catalyst for the speculative interest in BitMine. Ark Invest’s funds have been accumulating hundreds of thousands of BMNR shares over several trading days in late July and early August. According to CoinDesk, Ark’s Innovation and Next Gen Internet ETFs (ARKW) bought approximately 477,498 shares on July 30, 529,366 the day before, and about 540,712 more shares on July 31. These purchases, valued at an estimated $15 million to $17 million each day, demonstrate Ark’s strong conviction in the company’s new Ethereum treasury strategy.

This aggressive accumulation from a high-profile fund manager like Cathie Wood brings significant visibility to BitMine, attracting both institutional and retail investors who follow her investment decisions and seek to capitalise on her firm’s research and market insights. This level of institutional support provides a powerful signal of confidence in BitMine’s long-term potential.

Cathie Wood’s Interest Doesn’t Change BitMine’s Fundamentals

The story of BitMine Immersion Technologies is a classic high-risk, high-reward bet, and Cathie Wood’s interest has placed it firmly in the spotlight. While her firm is known for identifying both big winners and high-risk plays, it is crucial to recognise that Ark’s interest does not change the company’s underlying fundamentals. BitMine remains a very small company with limited revenue, and its balance sheet is dominated by crypto holdings, which are inherently subject to the volatility of Ethereum and Bitcoin prices.

The company also continues to report ongoing mining expenses, which can impact profitability. This makes it a risky bet for the average investor, but for those with a higher risk appetite and a strong belief in the future of Ethereum treasury companies, BitMine offers a compelling opportunity. Its bold strategy, combined with significant institutional backing, presents a rare chance to get in on a project with the potential for explosive growth but with a clear understanding of the speculative nature of the investment.