Bitmine Chairman's Message: The Crypto Bull Market Is Underway, and This Cycle Is Likely the Largest - BITMINE IMMERSION TECHNOLOGIES INC

Financial Performance:

• Bitmine outperformed Ethereum by 53,500 basis points (48,000 in 2025) since inception, with a 500% stock gain in late 2025 versus a 22% ETH rally, while gaining 24% against a backdrop of falling Treasuries (-8%).
• Executed the largest crypto stock buyback in history ($350M, 21M shares) in July-August 2026, successfully establishing a price floor.
• Issued an ETH credit in June 2026 at $80/share, currently valued at $99/share.
• Accumulated approximately $6M ETH over 15 months during a bear market, nearing the 5% market supply target.
• Generated ~$1M/day in staking rewards through Maven, the world's largest single staking operator ($2B AUM).
• Maintained a cost of funds at 9.56% on perpetual preferreds, lower than typical Bitcoin/Solana treasury yields.

Guidance and Future Outlook:

• Chairman Tom Lee predicts the current cycle is the largest crypto bull market in history, driven by institutional adoption and tokenization.
• Forecasts potential 227x or 25x moves for Ethereum based on historical breakout performance and tokenization drivers.
• Projects Bitmine shares could reach $300–$500 if ETH hits $22,000, or $1,200–$1,500 if ETH reaches $62,000.
• Anticipates $1.5T–$2T in wealth transfer from Baby Boomers to Millennials/Gen X driving allocation to digital assets.
• Expects Digital Asset Trusts (DATs) to absorb significant supply, creating scarcity-driven price appreciation in the bull market.
• Identifies October 5th as the definitive bottom of the four-year Bitcoin cycle.

Business Segments and Product Lines:

• Staking: Maven operates as the largest single staking operator globally, managing $2B in external crypto assets.
• Equity Investments: Lead corporate shareholder in Beast Industries (Step Financial); invested in ETH Labs, Ethereum Institutional, and ETH Systems.
• Strategic Holdings: Major shareholder in 8Co (world token project by Sam Altman, stake in OpenAI), viewing it as a high-value investment compared to peers trading at 6x NAV.
• Core Strategy: Maximizing exposure to Ethereum while reaching the 5% supply threshold to optimize shareholder value through supply absorption.

Market and Competitive Landscape:

• Tokenization: Cites BlackRock, JP Morgan, and Robinhood leading a shift where $160T of top assets (stocks, bonds, credit) may move on-chain; 10% tokenization creates a $16T market value for L1s.
• Institutional Flows: Notes record ETF inflows and outperformance against macro assets despite hawkish Fed and rising yields.
• Ecosystem Dominance: Ethereum highlighted as the primary beneficiary of tokenization due to its deep community and developer base.
• AI Integration: Positions crypto as a downstream AI story, where autonomous agents carry digital wallets and require human-in-the-loop verification.

Risks and Challenges:

• Deleveraging Risk: References the October 10th debt deleveraging event that previously cut short the stablecoin boom.
• DAT NAV Performance: Notes that only four DATs (including Bitmine) currently trade above NAV, with concerns that others may struggle despite a bull market.
• AI Capability: Highlights the need to manage AI agent capabilities and ensure human oversight in the growing "agentic AI" traffic model.

Management Commentary and Tone:

• Tone is highly confident and bullish, characterized by a "largest bull market ever" narrative and strong conviction in Ethereum's outperformance.
• Management emphasizes a "HODL" strategy, citing Charlie Munger, prioritizing accumulation during bear markets to capitalize on the ensuing rally.
• Asserts that institutional FOMO will accelerate in Q4 as the bull market gains traction.

Analyst Questions and Answers:

• No analyst Q&A session is present in this transcript; the text is a chairman's monologue.

Other Key Points:

• Technical Indicators: Bitcoin crossing above the 200-day moving average on August 19 has an 80% historical win ratio with a 193% average 6-month forward return.
• Market Dynamics: Contrasts current institutional-driven bull market against prior retail-driven cycles (2016 ICOs, 2019 NFTs, 2023 stablecoins).
• Strategic Timing: Emphasizes the company completed its major ETH accumulation (stacking) in the bear market just as the bull market began.