BitMine Immersion (NYSE:BMNR) stock staged a strong bullish breakout this week, reaching its highest level since May as Tom Lee’s aggressive dollar-cost-averaging (DCA) strategy began to pay off. Shares jumped to $22.83, up nearly 80% from their lowest point this year.
Tom Lee Has Been Using an Aggressive DCA on Ethereum
BitMine stock jumped this week as Ethereum (CRYPTO: ETH) jumped to $2,550, its highest level since January this year. It has soared by over 65% from its lowest level this year.
BitMine has been using the dollar-cost averaging strategy by buying Ethereum tokens as its price remained in freefall. It started this approach last July and now has 5.815 million tokens in its balance sheet. It has bought nearly 38,000 coins in the last 30 days, and if the trend continues, it will hit its 5% Ethereum buying target in the coming months.
Ethereum has rebounded because of the ongoing crypto market rally that has pushed Bitcoin (CRYPTO: BTC) and other tokens much higher. This rally happened after Scott Bessent started intervening in the bond market and after President Donald Trump met a group of senior crypto executives.
Ethereum demand has started soaring, with its supply in exchanges remaining at the lowest level in years. Spot ETH ETFs added over $697 million in assets this week, bringing the monthly inflows to $987 million, the highest increase since August last year.
Similarly, Ethereum futures open interest jumped to $33 billion, its highest level since May this year. It has been in a gradual uptrend after falling to $21 billion in June this year.
These events will benefit BitMine as it now nears its transition from a dilutor into a free-cash-flow machine. It will soon start selling its shares and move toward making money through staking. For example, assuming ETH averages the current price of $2,425, its annual staking revenue will be over $435 million.
BitMine Stock Price Technicals Point to More Gains
The daily chart shows that the BMNR stock has done well after bottoming at $12.73 in June this year. It has remained above the ascending trendline that connects the lowest swings since June.
BitMine has also crossed the 50-day Exponential Moving Average (EMA), while the Average Directional Index (ADX) has jumped to 29, its highest level since February. That is a sign that the uptrend is gaining momentum.
Therefore, with ETH forming a golden cross pattern, the stock will likely continue rising as bulls target the key resistance of $30, its highest point on January 28.
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