Bitmine Immersion, focused on Ethereum, has announced the launch of a stock buyback program worth up to $1 billion.
Announcement of the Stock Buyback Plan
According to the official press release, the new buyback plan will allow Bitmine Immersion to repurchase its shares in the open market. The company's board approved the buyback plan on July 29.
Market Reaction to the Buyback Proposal
Despite the buyback announcement, the company's stock fell by 8.86% within 24 hours of the announcement. As of July 30, the stock price was $32, significantly down from a recent peak of $135 reached just a month earlier.
Bitmine's Strategy Shift to Ethereum
On June 30, Bitmine Immersion shifted its strategy from Bitcoin to Ethereum. The company initiated a significant $250 million private placement for Ethereum. Tom Lee, newly appointed chairman, stated that the buyback was necessary for the sustainability of the company.
Despite the decline in stock prices following the buyback announcement, Bitmine Immersion continues to actively evolve by shifting its strategic priorities towards Ethereum.
