This week, BitMine’s stock price is in focus as Ethereum continues to rebound and a vote will take place on increasing the authorized number of shares. The BMNR closed the week with a price of $31.20. This is up from BMNR’s previous low last week, which was $27.
BitMine shareholders to vote to increase shares from 50 billion to 100 billion
In the next few days, the BMNR share price is likely to be volatile as shareholders decide whether or not they want more shares. The shareholders will decide whether or not to increase the number of outstanding shares to 50 billion from 500 millions.
Tom Lee stated in a press release that this new funding will allow it to selectively raise capital and at-the money (ATM).
He also noted that this new authority will allow for opportunistic transactions such as M&A. He noted, most importantly, that the company will be able to implement future share splits with the new funding as he anticipates the Ethereum price continuing its upward trend in the longer term.
Lee’s arguments has been criticized for some serious flaws. Analysts argue that the expansion of shares will be excessive, given that Ethereum is close to its target.
$BMNR I have read the proposed increase in authorized shares to 50B from 500M. Also, Tom’s thread. Tom’s thread was very transparent, and I appreciate that. He argues that this thread isn’t about him.
The company has purchased 4.1 millions tokens and currently holds 3.4% of ETH’s supply. It needs to purchase 1.6%, or less, of the supply. The company must authorize an additional 190,000,000 shares at the current share price.
Analysts noted, second, that the argument for a share split is vague, as Lee claimed that this will occur when Ethereum surges to $250,000 or more, which will be many years from now.
There are also concerns about the market-net asset value (mNAV) of the company, which is now 0.93. The risk of increased dilution is high when the stock trades below NAV, as has been seen in other cases like Michael Saylor’s Strategy which sells shares worth billions every month.
Technical analysis of the Ethereum price suggests further upside
Source: TradingView
Technicals indicate that Ethereum’s price will continue to rise in the weeks ahead. At $2,766, it has formed a pattern of a double bottom. Its lowest point was in December 2017. The neckline of the stock is $3,475, which was its highest on December 10th.
Double-bottoms are one of the more common signs that indicate a bullish trend reversal in technical analysis. It is about to cross the Supertrend Indicator. The token has also moved over the 50-day average and the Crypto Fear and Greed Index is now at neutral.
The token is expected to continue climbing as bulls aim for the next major resistance level of $3,475. If the token moves above this level, it could lead to further gains and possibly to the psychological $4000 level.
Technical analysis of the BMNR Stock Price
Source: TradingView
Charts of the daily timeframe show that BMNR’s stock has dropped in recent months. It went from a peak price of $160 last July to $30 today.
The stock is clearly a bearish indicator. It has been below the moving averages, the Supertrend and all other indicators. Like Ethereum, however, this stock also has a double bottom pattern, with the neckline set at $42.
The stock is likely to rebound in the coming week and could reach the next major resistance at $42. The psychological level at $50 will come into play if the stock moves above this resistance.
The post BMNR Stock Forecast as BitMine Shareholders Vote on Increasing Share Count may be updated as new developments unfold.
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