$1 Billion Buyback Fails to Stem the Tide — Ethereum-Linked Stocks Crash, BMNR Plunges Over 10%

TradingKey - On July 29, U.S.-listed crypto reserve company Bitmine Immersion (BMNR.US) disclosed its latest holdings: 192 bitcoins and approximately 625,000 ether (ETH), reflecting a significant increase of 58,224 ETH from prior levels. The company also announced a $1 billion share repurchase program in an effort to restore investor confidence. Despite these moves, the market responded negatively — BMNR shares plunged over 10% on the day, with the buyback failing to halt the downward momentum.

This sharp drop was not an isolated case, but part of a broad sell-off across the so-called “Ethereum reserve” stock group. GameSquare (GAME.US) and SharpLink Gaming (SBET.US) both fell over 10%, Bit Digital (BTBT.US) dropped more than 8%, and BTCS Inc (BTCS.US) declined 5%, indicating widespread profit-taking and loss of investor appetite.

Notably, this selloff occurred against the backdrop of strong inflows into U.S.-listed Ethereum ETFs and ETH prices repeatedly hitting new yearly highs. Ethereum has steadily gained value in 2025, underscoring continued long-term confidence in the underlying asset. Yet, the related equities have moved sharply in the opposite direction — highlighting growing skepticism around the valuation model for these stocks.

The core issue lies in their lack of sustainable profitability. Many of these companies were previously bid up purely on the narrative of holding ETH, with valuations far outpacing fundamental support. Simply holding crypto assets does not equate to a viable, scalable business — especially in a high-interest, liquidity-constrained environment as the Fed delays rate cuts, putting pressure on richly valued growth stocks.

Moreover, companies like BMNR are not widely held by mainstream institutional investors, and their disclosure practices remain limited, further eroding trust. Even large-scale buybacks are now seen as defensive maneuvers rather than signs of fundamental improvement.

This market action underscores a key reality: while Ethereum itself is strengthening, the meme-driven stocks are now paying down the excesses of past speculation. As the hype fades, the market is returning to fundamentals. Going forward, only companies with real operational capabilities and compliant corporate structures are likely to survive and thrive across market cycles.