Bitcoin Treasury Strategy Gains Traction as BitMine Expands Ethereum Holdings Despite Market Volatility

BitMine Expands Crypto Treasury with $82 Million Ethereum Purchase

BitMine, the world's largest Ethereum treasury company, has acquired 28,625 ETH tokens worth approximately $82 million, according to on-chain data from Arkham Intelligence^[1]. The purchase sent the company's shares soaring 11% and marks a significant vote of confidence in the crypto treasury strategy despite recent market turbulence.

The acquisition comes after a challenging period for BitMine, which saw its shares plummet more than 42% over the previous month amid questions about the sustainability of its Ethereum-focused treasury business model^[1]. Nevertheless, the company's shares remain up 190% over the past six months and 270% year-to-date^[1].

Understanding the Treasury Company Metric: Sats per Share

As corporate adoption of cryptocurrency treasury strategies grows, industry experts emphasize that traditional valuation metrics may not capture the full picture. For Bitcoin treasury companies specifically, the key performance indicator is "Sats per Share" rather than conventional share price metrics^[2].

Sats per Share measures how much Bitcoin each share represents, with one satoshi (or "sat") representing one hundred-millionth of a Bitcoin^[2]. When this number increases, shareholders gain more Bitcoin exposure with every share they hold, which should be a treasury company's primary objective^[2].

The metric intersects with another key measure: mNAV, which compares a company's total enterprise value to the market value of its Bitcoin holdings^[2]. When mNAV exceeds 1.0, the market values the company at a premium to its asset value, and new capital raises become "accretive" to existing shareholders—meaning Bitcoin holdings grow faster than the share count^[2].

Financial Performance Despite Volatility

Despite sitting on an estimated unrealized loss of $4.39 billion on its Ethereum holdings due to a 27.5% decline in ETH price over the past month^[1], BitMine reported strong financial results. The company posted a net income of $328.1 million for its 2025 fiscal year, with earnings per share of $13.39^[1].

In a milestone move, BitMine declared its first annual dividend of $0.01 per share and announced plans to launch a "Made-in America Validator Network," a dedicated staking offering designed to put its substantial Ethereum holdings to productive use^[1].

Industry Experts Question Premium Valuations

Not everyone shares the optimism surrounding crypto treasury firms. Matt Hougan, chief investment officer at Bitwise, predicted that "most crypto treasury firms will trade at a discount, and only a few exceptional firms will trade at a premium" in the future^[1].

Nate Geraci, president of NovaDiusWealth, went further, suggesting that spot crypto ETFs are likely to become "DAT killers," referring to Digital Asset Treasury firms like BitMine^[1]. "DATs thrived via regulatory arbitrage," Geraci stated. "That game is pretty much over now"^[1].

Long-Term Strategy Focus

Proponents of the treasury company model argue that the approach requires a fundamental shift in investor mindset. Rather than measuring success in fiat currency terms, treasury companies focus on accumulating more Bitcoin or cryptocurrency per share over time^[2].

According to this philosophy, share price fluctuations matter less than the underlying cryptocurrency exposure, with the expectation that "share price follows Sats per Share, not the other way around" over the long term^[2]. A well-managed treasury company should secure its holdings, avoid operational risks, and build its cryptocurrency reserves "one sat at a time"^[2].

As corporate cryptocurrency adoption continues to evolve, the tension between traditional valuation methods and crypto-native metrics will likely remain a point of debate among investors and market analysts.