BitMine Immersion Technologies Inc (NASDAQ: BMNR) has taken the crypto world by storm in 2025. Since it started trading in June, the stock has surged over 600%. The reason? BitMine made a bold move—shifting away from Bitcoin mining and focusing entirely on Ethereum. Instead of mining, the company is now building up a massive treasury of ETH, becoming the largest corporate holder of Ethereum in the world.

This major change has caught the attention of big-name investors. ARK Invest, led by Cathie Wood, now holds hundreds of millions in BMNR stock. Other major backers include Peter Thiel’s Founders Fund, market strategist Tom Lee, and veteran investor Bill Miller III. For those who believe in Ethereum’s long-term future and the idea of crypto “supercycles,” BitMine is becoming a stock to watch closely.

However, not everyone is on board. Investment firm Kerrisdale Capital, led by Sahm Adrangi, recently released a short-seller report criticizing BitMine’s strategy. They argue that the company’s business model—selling stock at high prices to buy more Ethereum—is unsustainable. Kerrisdale says this “flywheel” approach is losing momentum fast.

Their main concern is dilution. BitMine has issued over $10 billion worth of new shares in just three months. While that helped buy more ETH, it also reduced the value of each share. For example, the company’s recent $365 million stock offering was marketed as a big win at $70 per share, but once you factor in the extra perks (like stock warrants), the deal was heavily discounted.

Kerrisdale also points out that BitMine’s strategy worked well when there was hype and limited competition. But now, with more crypto-focused ETFs and digital asset treasuries popping up, BitMine’s stock might lose its premium edge.

Despite the criticism, institutional investors are still backing BitMine in a big way. ARK Invest holds about $417 million in BMNR across multiple ETFs. Founders Fund has a 9% stake in the company. And Bill Miller remains supportive of BitMine’s Ethereum-focused game plan.

Tom Lee believes BitMine is tapping into two massive trends: crypto and artificial intelligence. He sees the company’s aggressive ETH accumulation as part of a broader supercycle that could reshape finance and technology.

For retail investors, BitMine represents both a big opportunity and a big risk. On one hand, it could follow in the footsteps of MicroStrategy, which made billions by loading up on Bitcoin. On the other hand, if interest fades or dilution continues, the stock could suffer.

The bottom line: BitMine is riding high on Ethereum optimism and strong institutional support—but critics warn of growing risks from share dilution and market competition. If Ethereum keeps gaining traction, BMNR could rise even higher. But if the hype fades, the company’s premium valuation may not hold up.

Keywords: BitMine stock, BMNR, Ethereum treasury, ETH holdings, institutional crypto investment, Kerrisdale short report, crypto stocks 2025, Ethereum strategy, digital asset treasury, crypto supercycle.