Bitmine is pulling back on its Ethereum buying spree. The company, which had been aggressively accumulating ETH, said it has reduced the pace of those purchases. Instead, it's pouring $86 million into a stock buyback program, repurchasing 5.5 million of its own common shares.
Capital reallocation
The shift was announced by Bitmine Chairman Tom Lee. In a statement, Lee said the company is pivoting its capital allocation strategy. The $86 million that had been earmarked for ETH buys is now going toward the share repurchase. The move signals a change in priorities for the crypto-focused firm, which had made large-scale Ethereum acquisitions a hallmark of its treasury strategy.
Bitmine didn't say why it's slowing down on ETH. The company has not disclosed whether it sold any of its existing holdings or simply stopped adding. The buyback, however, suggests management sees its own stock as undervalued compared to the digital asset.
Buyback details
The repurchase covers 5.5 million common shares. At current prices, that's roughly $86 million worth of stock. The buyback program is already underway, according to the company. It's a significant chunk of Bitmine's market cap, though the exact percentage wasn't given.
Share buybacks typically boost earnings per share by reducing the number of outstanding shares. They also signal confidence from management. In this case, Lee is betting that buying back stock will deliver better returns than continuing to accumulate Ethereum.
The company hasn't said whether the reduced ETH pace is temporary or permanent. It also hasn't outlined any new investment targets. For now, the focus is on the buyback. Investors will be watching to see if Bitmine resumes its crypto buying spree later, or if this marks a broader strategic shift away from digital assets.
Lee's statement didn't offer a timeline for the buyback's completion. The company is expected to provide more details in its next earnings report.
