South Korean retail pours $1.4B into BitMine despite ~82% stock drop after ETH pivot
South Korean retail investors continued heavy net buying of BitMine Immersion Technologies through 2025, funneling about $1.4 billion into the U.S.-listed stock despite an ~82% decline from July highs. BitMine — backed by Peter Thiel and run by Tom Lee — pivoted from Bitcoin mining to building an ether (ETH) treasury earlier in the year, a strategy that powered a >3,000% rally into early July and made BitMine one of the largest public-company ETH treasuries (roughly $12 billion in ETH holdings). Traders also bought leveraged exposure via the T-Rex 2X Long BitMine Daily Target ETF (T-Rex), which attracted roughly $566 million but has since fallen about 86% from its September peak. Ether itself is down roughly 11% in 2025 after earlier accumulation pushed ETH near $5,000 in August. Korean retail interest appears driven by convexity: equity-listed ETH treasuries function as amplified ETH proxies, delivering outsized gains in momentum phases and steep drawdowns when flows reverse. Key data points for traders: $1.4B net Korean inflows into BitMine in 2025, ~82% stock decline from July high, >3,000% rally earlier in the year, ~$566M into a 2x leveraged BitMine ETF, and ~ $12B in company ETH holdings. This dynamic increases correlation between BitMine equity flows and ETH price moves, raising both leveraged upside in rallies and amplified downside risk during reversals.
Bearish
Short-term impact: bearish. Heavy retail inflows into BitMine equity and its leveraged ETF amplify correlation between equity flows and ETH price. The large net buying by Korean retail despite steep equity drawdowns signals crowded positioning. When flows reverse, the leveraged ETF and equity can accelerate outflows, increasing selling pressure on both BitMine shares and ETH (via perception and derivative-linkage). The stock’s ~82% fall from its peak and the ETF’s ~86% loss signal vulnerable momentum. Mid-to-long-term impact: mixed-to-neutral. BitMine’s substantial ETH holdings (roughly $12B) underscore a structural link to ETH supply dynamics and could support ETH price when the company accumulates long-term. However, the conversion of ETH exposure into equity and ETFs introduces amplified volatility and cross-market contagion risk. For traders: expect higher short-term volatility and tail risk in ETH tied to equity flow reversals; consider position sizing, stop-loss discipline, and monitoring Korean retail flows and ETF liquidity. The net effect on ETH price is likely negative in the near term due to crowding and deleveraging risk, while longer-term direction depends on actual company accumulation strategy and institutional demand.