SKN | Bitmine Shifts $46 Million Into Share Buybacks as Tom Lee Defends Crypto’s Resilience Against AI Stocks

Key Points:

• Bitmine Immersion Technologies repurchased 2.04 million shares for approximately $45.9 million, resuming buybacks after a roughly 10-week pause.
• Chairman Tom Lee said Ether had declined 13% from its recent peak, compared with a 20% drop in the U.S. semiconductor index, arguing that crypto had held up relatively better than AI-related equities.
• Bitmine added another 10,452 ETH, bringing its holdings to approximately 6.05 million ETH, or 4.95% of Ethereum’s reported circulating supply.

Bitmine Immersion Technologies is directing substantial capital toward its own shares while continuing to accumulate Ethereum, illustrating how digital-asset treasury companies are adjusting capital allocation during a market downturn. The company spent nearly $46 million on share repurchases last week as Chairman Tom Lee argued that cryptocurrencies had proved relatively resilient compared with artificial intelligence-related stocks. The strategy highlights a key question for crypto-focused companies: when market prices weaken, should available capital support token accumulation, or should management prioritize the valuation of the company itself?

Bitmine Restarts Share Buybacks After a Ten-Week Pause

According to CoinDesk, Bitmine repurchased 2.04 million shares at an average price of $22.48 last week, spending approximately $45.9 million. The purchases marked the company’s first buyback since August 17, following an earlier five-week repurchase program that involved roughly 21 million shares and approximately $350 million.

The latest transactions brought Bitmine’s reported share repurchases for 2026 to 22.9 million shares worth nearly $400 million. The company said it intends to continue buying shares when management believes the market price undervalues the business.

Share buybacks can increase each remaining shareholder’s proportional ownership when shares are retired or held as treasury stock. They may also signal management’s confidence in the company’s valuation. However, their effectiveness depends on the repurchase price, the company’s liquidity needs and the opportunity cost of using capital for buybacks instead of expanding its Ethereum holdings or funding other operations.

Tom Lee Compares Crypto With AI-Related Equities

Lee attributed the recent market weakness to broader risk-off sentiment, which has affected both cryptocurrency markets and technology stocks. He noted that Ether had fallen approximately 13% from its recent peak, while the U.S. semiconductor index, tracked by the SOXX exchange-traded fund, had declined around 20% over the same period.

Lee described the comparison as evidence that crypto had held up relatively well during the pullback. He also pointed to concerns over the substantial capital spending required to build data centers and the uncertainty surrounding the financial returns from artificial intelligence infrastructure.

The comparison provides a useful snapshot of relative performance, but it does not establish that cryptocurrencies are insulated from further losses. Both digital assets and semiconductor stocks remain sensitive to changes in liquidity, investor positioning and expectations for future growth. Their relative performance can also change significantly depending on the period measured.

Ethereum Accumulation Continues as Bitmine Approaches Its Target

Alongside its share repurchases, Bitmine acquired another 10,452 ETH worth approximately $24.5 million, down from 12,535 ETH purchased during the previous week. Its total holdings reached approximately 6,051,933 ETH, representing around 4.95% of Ethereum’s reported supply of 122.2 million tokens.

The company was therefore approximately 58,000 ETH short of its stated goal of holding 5% of the supply. This target helps explain why Bitmine may be adjusting the pace of token accumulation while directing more capital toward its own shares.

Bitmine also reported staking approximately 5.23 million ETH, equivalent to around 86% of its holdings. Based on prevailing yields, the company projected approximately $318 million in annualized staking revenue. That figure is an estimate, not guaranteed income, and actual results can vary with staking yields, network conditions, operational expenses and the price of ETH.

Going forward, investors will be watching whether Bitmine maintains its repurchase program, how quickly it approaches its Ethereum accumulation target, and whether staking revenue can support its treasury strategy through market volatility. The balance between share repurchases and token purchases may offer insight into management’s assessment of relative value, but neither decision guarantees improved shareholder returns. The broader test will be whether Bitmine can manage its capital efficiently while navigating changing crypto prices and continued uncertainty across technology markets.