THE BILLION-DOLLAR CASH-FLOW OPPORTUNITY FOR $BMNR THAT NOBODY IS TALKING ABOUT
We all know that @fundstrat and $BMNR are well on their way to accumulating 5% of total $ETH supply. This week alone, $BMNR bought nearly $1B worth of $ETH, an incredible display of their speed, size, and liquidity.
Being the biggest and fastest $ETH DAT is the main reason for the premium-to-NAV that the market has assigned to $BMNR. However, there is another incredibly-powerful weapon in their arsenal that nobody is talking about: the cash-flow opportunity via staking.
The yield that can be generated by on-chain staking is a perfect representation of $ETH’s utility as an asset. Simply put, staking involves locking up a portion of your $ETH to help support the network’s security and operations by validating transactions. In doing this, you earn a yield on your staked $ETH, which can range from 3-5% APY depending on network activity. Further, there are additional protocols such as liquid re-staking that can earn additional yield. Crypto-native asset managers such as @ElectricCapital have discussed the potential of up to 9% APY when fully leveraging staking/re-staking/other DeFi protocols.
Why does this matter for $BMNR?
It’s simple — as far as we know, $BMNR has not begun staking their massive pile of $ETH yet, meaning the market isn’t pricing in the explosive cash-flow opportunity from putting their 6M $ETH to work on-chain, once their 5% goal is reached (not that they can’t start doing this sooner).
To illustrate the power of this opportunity, let’s say $BMNR owns 6M $ETH, trading at $10,000 per token. Now, let’s assume $BMNR can get a modest 4% APY from staking. The result?
$2.4B in cash flow from passive staking, all while bolstering network security, validating transactions, and serving as a benevolent entity to Ethereum as a whole.
What if $BMNR eventually owns 7M tokens when $ETH is trading at $60,000? What if $BMNR can deploy additional staking protocols to get 6% APY?
The result is a staggering $25.2B in cash flow for a business with immaterial operating costs.
Attach a 30x multiple to that, assume 700M shares outstanding, and you get a $BMNR share price of $1,080, a 2,060% increase from current levels.
Everyone is so focused on NAV right now that they are missing the unbelievable opportunity that exists for $BMNR to pull in billions in free cash flow, which they can use to buy more $ETH, do share buybacks, pay cash dividends, or acquire other DATs.
I believe this could be the most ferociously-accretive flywheel the capital markets have ever seen.
The crazy part is, this still is not priced in, and I believe this will easily justify a 2.25x+ mNAV on the $BMNR share price. @fundstrat is not only going to grow your $ETH per share, he’s also going to grow your earnings-per-share.
An aggressive re-rating might be just around the corner. $BMNR
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