Why Bitmine Immersion Technologies stock fell nearly 11% today

The blow was compounded by the ongoing cryptocurrency rout on Thursday and significant price target cuts by analysts. Bitmine Immersion Technology (BMNR 10.83%). The cryptocurrency company’s stock price fell nearly 11% that day, a much steeper decline than the cryptocurrency company’s 1.6% decline. S&P 500 index.

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The gloom that has recently settled over the Cryptoverse has extended to digital currency holder Bitmine. Ethereum.

Image source: Getty Images.

All is well and good when those assets are thriving, but that’s not the case now. Growing concerns that the Federal Reserve will not cut interest rates in December have led many investors to abandon all types of cryptocurrencies. Ethereum, like everyone else, has accepted this. Therefore, it is not surprising that people are increasingly pessimistic about Bitmine.

Complicating this further was the price target cut enacted by B. Riley’s Fedor Shabalin on Thursday morning. The analyst took the ax to Bitmine’s fair value assessment, cutting it to $47 per share from $90 previously. Interestingly, he maintained a Buy recommendation on the stock, so this doesn’t make him a Bitmine bear.

Bitmine Immersion Technology

today’s change

(-10.83%)$-3.16

current price

$26.02

Key data points

market capitalization

8 billion dollars

work range

$25.95 – $30.38

52 week range

$3.20 – $161.00

volume

62M

average volume

45M

gross profit

4.57%

dividend yield

Not applicable

Is it time to trade?

Cryptocurrency, like the companies you invest in, is always a volatile game. However, among the major blockchains, I would say that Ethereum has above-average potential due to its usefulness (and reputation) as a suitable platform for decentralized applications (dApps). Taking that into account, I’d say Thursday’s Bitmine sell-off feels a bit overhyped and may present a “buy on the weakness” opportunity.