Bitmine Buyback Shares Worth IDR 16 Trillion, Market Reaction is Negative?

Jakarta, Pintu News – A surprising move has come from Ethereum (ETH)-based crypto mining and treasury company Bitmine Immersion, led by renowned analyst Tom Lee.

The company announced a Rp16.4 trillion ($1 billion) share buyback program, but the market reaction was negative with the share price plummeting 8.86% the day after the announcement.

Amid investor speculation, this move is seen as an effort to maintain the sustainability of the company, while strengthening its position as an Ethereum-focused treasury firm. Is this a good move or a danger signal?

Share Buyback Plan and Market Reaction

On July 29, 2025, Bitmine’s board of directors approved a $1 billion common share buyback plan, which will be conducted through open market and negotiated transactions based on the conditions at the time.

The buyback was announced as a long-term strategy to preserve the company’s value, not just to increase Ethereum (ETH) holdings. Despite the positive tone, the market responded negatively.

Bitmine’s share price (code BMNR) plummeted by 8.86% to IDR525,472 ($32) on July 30, whereas a month earlier it had shot up to IDR2,216,835 ($135), scoring a surge of almost 700%.

This decline is believed by some analysts to be a technical effect of the registration of shares now available for trading, rather than a direct assessment of the buyback plan. This was also confirmed by Tom Lee in an exclusive interview with Bloomberg.

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Tom Lee: Long-term Focus and Smart Capital Allocation

In an official press release, Tom Lee, Chairman of Bitmine and founder of Fundstrat, explained that the purpose of the buyback is not simply ETH accumulation, but to maximize return on capital. “On our way to achieving the ‘alchemy of 5%’ of total ETH, there comes a time when purchasing our own shares provides the best return expectation,” Lee said.

This buyback move seems to be a signal that the company is maintaining efficient use of funds, rather than aggressively accumulating ETH during high volatility.

For information, as of July 30, 2025, Bitmine has accumulated 625,000 ETH, which is equivalent to approximately IDR 26.2 trillion ($1.6 billion). With the company’s market cap at IDR 58.9 trillion ($3.59 billion), this makes ETH the main asset on Bitmine’s balance sheet.

Read also: DOGE vs BONK: Popular Memecoin Battle, Who Will Dominate the Market in 2025?

Strategic Transformation: From Bitcoin to Ethereum Treasury

The major transformation began on June 30, 2025, when Bitmine announced a shift in strategy from Bitcoin (BTC) to Ethereum (ETH) as the company’s primary asset. This was marked by two major moves: a Rp4.1 trillion ($250 million) private placement for the acquisition of ETH, and the appointment of Tom Lee as the company’s new chairman.

This shift in focus paid immediate dividends. Bitmine’s share price jumped nearly 700% in a short period of time, signaling the market’s positive response to the Ethereum treasury strategy. This change also made Bitmine a pioneer in the adoption of ETH as the primary asset of public company treasuries.

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Reference:

• Crypto.news. Tom Lee’s Ethereum treasury announces stock buyback worth $1b. Accessed July 31, 2025.
• Featured Image: CNBC