Bitmine tracks ETH closely, limiting excess return potential: BIT analyst

BIT, formerly Matrixport, analyst Markus Thielen said Bitmine (BMNR), an Ethereum accumulation company and a DAT, has tracked ETH prices so closely that it may be difficult for investors to generate meaningful excess returns from the stock. Thielen said Bitmine shares have moved almost in lockstep with ETH, while a short-term staking yield of just 2% to 3% is unlikely to create clear differentiation. He added that meaningful outperformance would require a major improvement in investor sentiment, noting that for DATs, the net asset value (NAV) multiple can move between 0.5x and 3x depending on sentiment, and cautious investors tend to buy at discounts to NAV and sell when premiums become excessive.