Earnings Call - BITMINE IMMERSION TECHNOLOGIES INC

Financial Performance:

• Bitmine Immersion Technology (referred to as Bitmines) outperformed Ethereum by 48,000 basis points in 2025, achieving a 500% price increase versus Ethereum's 22% in the latter half of the year.
• Since inception, the company has generated 53,500 basis points of outperformance against Ethereum, including a 3% gain for Bitmine while Ethereum declined 9% in a bear market environment in 2026.
• Completed the largest cryptocurrency buyback in history on July 14, 2026: repurchased 21 million shares for $350 million, establishing a stock price floor.
• Accumulated approximately $6 million in Ethereum over 15 months during the previous bear market (June 30, 2025, to December 31, 2026).
• Cost of funds for perpetual preferreds stands at 9.56%, significantly lower than the financing costs of traditional Bitcoin or Solana treasury models.
• Maven, the company's staking arm, manages $2 billion of external crypto and generates approximately $1 million in staking rewards daily.
• Issued an ETH credit at $80/share in June 2026, which has appreciated to $99/share.

Guidance and Future Outlook:

• Chairman Tom Lee declares a full-blown crypto bull market is underway, citing it as potentially the largest cycle in history due to institutional participation and tokenization.
• Bitcoin's move above its 200-day moving average on August 19, 2026, historically signals an 80% win ratio with an average 193% six-month forward return.
• Targets Ethereum to potentially reach $22,000 or $62,000, which would imply Bitmine share prices of $300–$500 or $1,200–$1,500 respectively (current price cited as $2,600, likely a data anomaly in the transcript or a pre-split figure).
• Bitmine aims to reach a 5% ownership target of total Ethereum supply to optimize shareholder value, currently having accumulated ~$6M ETH.
• Anticipates significant wealth transfer ($1.5T–$2T) from Baby Boomers to Millennials/Gen X over the next three years, driving allocation toward digital assets.
• Forecasts tokenization of $16 trillion in global assets (10% of the $200T liquid market), with Ethereum as the primary beneficiary.
• Views crypto as a downstream story to AI, where agents utilizing digital wallets will drive future traffic and demand.

Business Segments and Product Lines:

• Maven: World's largest single staking operator, managing $2 billion in third-party assets to generate staking yields.
• Strategic Investments: Holds significant stakes in 8co (world tokens, backed by Sam Altman and OpenAI), Beast Industries (Step Financial), ETH Labs, ETH Institutional, and ETH Systems.
• Ecosystem Development: Lead investor in Ethereum Foundation spinoffs, aiming to support the broader Ethereum ecosystem and tokenization infrastructure.
• Corporate Strategy: Focusing on maximizing exposure to Ethereum (90% correlation) and leveraging scale to capture opportunities in tokenization and the AI-crypto intersection.

Market and Competitive Landscape:

• Identifies a shift from retail-driven cycles (2016 ICOs, 2019 NFTs) to an institutional-driven cycle powered by tokenization, with major players like BlackRock, JP Morgan, and Robinhood entering the space.
• Highlights that crypto significantly outperformed other macro assets (S&P 500, bonds, oil) in Q3 2026 despite hawkish Fed policies and tightening financial conditions.
• Notes that 8co and similar entities trade at six times NAV, presenting valuation arbitrage opportunities.
• Positions Bitmine as a superior credit instrument, outperforming Treasuries (-8%), Investment Grade bonds (-6%), and High Yield bonds (-3%) during the same period.
• Argues that the "DeFi Trust" (DAT) model is creating supply shocks, with entities like Ethereum DATMs holding $21 billion in ETH (7% of network supply), reducing available liquidity.

Risks and Challenges:

• Reliance on Ethereum price performance, which remains highly correlated to Bitmine's stock price.
• Regulatory uncertainty surrounding tokenization and the classification of Digital Asset Trusts (DATs).
• Potential risks related to the "human in the loop" requirement for AI agents utilizing digital wallets.
• Dependence on the successful execution of the $1.5T–$2T wealth transfer thesis and its conversion into crypto assets.
• Market volatility if the anticipated bull market fails to materialize or if the four-year cycle bottom (October 5) does not hold.

Management Commentary and Tone:

• Tone is highly confident and optimistic, characterized by phrases like "it's all maths" and "biggest bull market we've ever seen."
• Emphasizes long-term value creation over short-term trading, citing Charlie Munger's philosophy of "waiting."
• Management demonstrates proactive capital allocation through significant buybacks and strategic equity positions in high-growth sectors (AI, tokenization).
• Frames the current market environment as a "super cycle" driven by structural changes rather than speculative retail hype.

Analyst Questions and Answers:

• Note: The provided transcript contains only the Chairman's prepared opening remarks and conclusion; no specific analyst Q&A session data is included in the text.

Other Key Points:

• Tokenization is identified as the primary differentiator for this cycle compared to previous retail-heavy cycles.
• The "DeFi Trust" (DAT) mechanism is highlighted as a new supply-absorbing entity not present in previous bull markets.
• Bitmine's buyback of $350 million and issuance of ETH credit are cited as key catalysts for outperformance and shareholder value optimization.
• The correlation between Bitmine's stock and Ethereum price is quantified at 90%, suggesting that share price appreciation is heavily tied to ETH performance and accumulation strategy.
• The transcript is set in the future (October 2026), projecting historical data and future outcomes based on the speaker's model.