BMNR Stock Drops 4% After Tom Lee Signals Slower Ethereum Buys
BMNR stock price fell to $22.00 on May 7, down 3.97%, after chairman Tom Lee indicated at Consensus Miami that BitMine may slow its Ethereum purchases as it approaches its 5% supply target. The company currently holds 5.18 million ETH (4.29% of circulating supply). The stock has dropped 46% over six months and sits 86% below its 52-week high. The daily chart shows an ascending channel since early February, formed after a 59% drop from December highs. Channel patterns after sharp declines often act as continuation patterns to the downside. Additionally, Tom Lee highlighted a $4 billion share repurchase program as an alternative use of capital, which could weaken the ETH treasury narrative supporting BMNR's premium. Technical indicators show weakness: the 20-day EMA at $21.92 is the last support; prior breaks have led to sharp corrections. Options data reveals retail adding long bets while existing positions close, suggesting a potential long squeeze. If support at $21.92 breaks, immediate targets are $21.47, $20.65, and $19.84 (0.618 Fibonacci). A close below $19.84 would confirm bearish continuation toward $12.96.
Key facts
- BMNR dropped 3.97% to $22.00 on May 7.
- Chairman Tom Lee hinted at slowing Ethereum purchases near 5% supply target.
- Stock is 86% below 52-week high, down 46% in six months.
- 20-day EMA at $21.92 is critical support; prior breaks caused sharp drops.
- Bearish CMF divergence and conflicting options data suggest downside risk.