Bitmine, the 'one-pick' of Korean retail investors that drew 1 trillion won, plunges 38% in a month

The 'Ethereum leader' holding 3.6 million Ethereum

Trading below the value of its Ethereum holdings

99% of domestic investors net bought after the 'peak'

Bitmine Emergent Technology, the overseas stock that domestic investors have net-bought the most this year, is plunging as it gets caught up in the decline of the crypto asset Ethereum.

On the 17th in the Nasdaq market, Bitmine's stock fell 10.54%. The recent one-month drop reached 37.91%. Bitmine is the world's largest Ethereum-specialized investment company holding 3.6 million Ethereum. In the second half of this year, its share price surged 106.3% along with the sharp rise in Ethereum prices.

As Ethereum prices have adjusted since last month, Bitmine has shown a larger decline. On the 17th during U.S. regular trading hours, Ethereum prices fell 1.8%, while Bitmine's stock fell more than five times that.

Securities analysts say that the market has lost interest in crypto asset investment firms including Bitmine, and selling pressure is overwhelming buying pressure. As Bitmine's market capitalization has fallen below the net asset value (NAV) of its Ethereum holdings, there is an assessment that the business model of buying Ethereum through issuing new shares and convertible bonds (CB) itself has hit its limits.

The concerns of domestic investors who massively net-bought Bitmine are also growing. Domestic investors have net-bought $1,171,890,000 (about 1.7189 trillion won) worth of Bitmine shares this year alone. They bought the largest amount among all overseas-listed stocks.

However, because buying pressure concentrated after Bitmine's stock hit a peak of $135 on July 7, most investors currently holding the stock are estimated to be in a loss. From July 8 to November 17, domestic investors' net purchases of Bitmine amount to $1,171,740,000.

Jeon Beom-jin, Reporter forward@hankyung.com