Bitmine stock continued to fall after Standard Chartered analysts issued bold predictions for Ethereum as traders awaited the outcome of a key shareholder vote.
summary
- BitMine stock is forming a double-dip pattern on the 8-hour chart.
- Major shareholder voting on the increase in authorized shares ends on Wednesday.
- Standard Chartered predicts that the price of Ethereum will soar to $7,500.
Bitmine, which is associated with Tom Lee, is trading at $31.60 and has remained at this level for the past few days. This price is just above the key support level at $28.75 that formed a double-dip pattern.
Bitmine stock will react to the results of a major shareholder vote that concludes on Tuesday. Shareholders are voting on whether to increase the number of authorized shares to 50 billion from the current 500 million, which could lead to significant dilution over time.
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Mr Lee insisted the aim was not to dilute the shares held by Peter Thiel, Cathie Wood and Jonathan Bates. Rather, he argues, the increase will provide the company with the cash it needs to make strategic acquisitions, allow it to selectively raise at-the-money capital, and support future stock splits.
2/
There are three reasons why a company needs to increase its authorized stock, one of which is the most important.– Selective ATM, enabling capital raising
– Opportunistic transactions (e.g. mergers)
– Supports future stock splitsThe last point is important🔑
Whenever a company splits its stock… pic.twitter.com/WZshJ9qgB6
— Thomas (Tom) Lee (not the drummer) FSInsight.com (@fundstrat) January 2, 2026
The company also claims that it will soon reach its current authorized share limit, hinting that it may stop accumulating further Ethereum (ETH) to reach its goal of owning 5% of the market capitalization.
There are signs that BMNR's stock price will see increased volatility in the coming days as investors react to the voting results. Implied volatility has risen to 97%, approaching an all-time high of 103%, according to data compiled by Yahoo Finance.
On the positive side, BitMine has started monetizing its Ethereum holdings by staking over $3 billion worth of tokens. The company aims to eventually stake all Ethereum coins, and if it reaches its goal of owning 5% of the market capitalization, it will be able to earn more than $500 million annually.
Analysts at Standard Chartered also believe that there are many catalysts for Ethereum to push it to $7,500 in the long term. If BitMine reaches this level, its Ethereum holdings will be worth more than $32 billion.
BitMine stock price technical analysis
BMNR Stock Price Chart |Source: TradingView
The 8-hour chart shows that the BMNR stock price has been range-bound for the past few weeks. If you look closely, you can see that it has formed a double bottom pattern at $28.76 and a neckline at $41.
Therefore, this pattern means that the bears are hesitant to trade below that level. Therefore, the most likely scenario is for the bulls to rally and target the neckline at $41.2. Beyond this price, it can rise further and reach $50 or more.
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