BitMine decides to pay an annual dividend amid Ethereum (ETH) decline

JH Kim

Summary

BitMine said it decided to pay shareholders an annual dividend in response to the decline in Ethereum (ETH) prices.
The company expressed its intention to maintain a shareholder return policy even as ETH valuation losses are reflected in corporate value.
BitMine is pursuing new businesses such as expanding staking infrastructure, but said whether this dividend policy will be linked to long-term corporate value enhancement will be judged through performance.

BitMine has decided to pay shareholders an annual dividend in response to the decline in Ethereum (ETH) prices. This is a measure taken as the valuation losses on the ETH held by the company are reflected in its corporate value.

On the 21st (local time), the crypto asset (cryptocurrency) specialist media The Block reported that BitMine will implement a dividend of $0.01 per share. The company is interpreted as showing its willingness to maintain a shareholder return policy amid increased market volatility.

According to the outlet, BitMine's ratio of held asset value to corporate value (mNAV) is currently below 1. The ETH held is reported to have unrealized losses of about $4.5 billion. As the decline in the value of held assets due to ETH price adjustments continues, the company's financial indicators are also coming under increased pressure.

BitMine has recently been pursuing new businesses such as building a validator network and expanding staking infrastructure to diversify its revenue sources. How this dividend policy will be linked to a strategy to enhance long-term corporate value is expected to be judged based on future performance.

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