Tom Lee may be getting the last laugh. Lee — the Fundstrat co-founder and longtime Wall Street strategist who now serves as BitMine's chief strategy officer — championed the company's all-in Ethereum bet, and BitMine stock has jumped to $22.83, its highest level since May this year and far above the year-to-date low of $12.7 — a rebound that points to the payoff from his dollar-cost averaging strategy.

The rally has coincided with broader strength in the Ethereum market, where a spot Ethereum ETF is now available, staking inflows are soaring, and the price has formed a golden cross pattern. That backdrop has lifted the value of the ETH BitMine has accumulated.

Ethereum Benefits from Staking and ETF Inflows

Ethereum's price has jumped over the past few days, climbing from its year-to-date low of $1,508 to $2,451, and demand continues to build.

Spot Ethereum ETFs added over $184 million in assets on Friday, bringing weekly inflows to $697 million. So far this month, the funds have attracted close to $1 billion in inflows — a sign that investors are buying the dip. The funds offer a regulated route to ETH exposure without holding the token directly, while corporate treasuries have emerged as a second major source of demand for the coin.

The staking market tells a similar story. Data shows that Ethereum's staking market capitalization has jumped to more than $103 billion, while its staking ratio has recently crossed the important 35% milestone, meaning more than a third of the coin's supply is now locked in staking and unavailable for immediate sale. The total number of staked coins stands above 42.3 million, a figure that continues to rise.

Staking inflows indicate that investors are looking to lock up their coins for longer and take advantage of monthly distributions. This growth likely explains why the amount of Ethereum held on exchanges has continued to fall this month.

The technical picture is also encouraging. Ethereum has just formed a golden cross pattern as the 50- and 200-day weighted moving averages (WMAs) crossed — a formation that has historically been followed by further gains over time.

BitMine's DCA Strategy Has Worked

If Ethereum's price rebounds completely, it will be a sign that Tom Lee's dollar-cost averaging (DCA) strategy has worked perfectly. DCA is a strategy in which an investor buys an asset in small chunks, even while the price is falling, with the hope that all of the purchases become profitable once the price turns around. Rather than trying to time the market, the approach spreads entries across many price levels.

BitMine's move into ETH follows the corporate crypto-treasury playbook pioneered by Michael Saylor's MicroStrategy with bitcoin: a listed company steadily accumulating a token on its balance sheet as a core business strategy. BitMine, which began as an immersion-cooled bitcoin mining and hosting operator, repositioned itself around an Ethereum treasury last year and has since become the largest corporate holder of the token.

In BitMine's case, the company has been buying small amounts of ETH tokens each week since July of last year. It continued those purchases even when the coin plunged to $1,500.

BitMine now holds more than 5.8 million coins and is about to hit its 6 million target. The coins it bought when ETH dropped to $1,500 have already seen their value jump by more than 60%.

The company is nearing an inflection point as its ETH buying strategy approaches the 6 million mark. Once that happens, BitMine will accelerate its revenue generation through staking. The current staking reward is 2.66%, meaning the 6 million coins would generate 159,600 coins a year. At the current price, those coins would be worth more than $391 million. If the company decides to stake the 180,000 coins, all of the rewards and staking income would total 234,037 over the next decade — a substantial amount if ETH continues rising.

BitMine hopes to use the staking revenue to pay dividends and fund share buybacks for investors. Crossing the 6 million mark would shift the strategy from its accumulation phase to income generation, making the rollout of staking, dividends, and buybacks the milestones to watch as the model enters its next phase.

BMNR Stock Price Technical Analysis

The daily chart shows that BMNR — BitMine's NYSE Arca-listed shares — has rebounded after bottoming at $12.7 in July this year. It has remained above the ascending trendline that connects the lowest swings since June, and it has moved above the 50-day and 200-day Weighted Moving Averages (WMA). At the same time, the MACD and the Relative Strength Index (RSI) have continued to rise — a sign that momentum is building. The next key resistance level for the shares sits at $30.