This Ethereum Treasury Company Is Close to Owning 5% of All ETH in Circulation. Does That Make It a Buy?

BitMine Immersion Technologies (NYSE: BMNR) is the largest Ethereum (CRYPTO: ETH) treasury company in the world, and it's not even close. After massive buys over the past 30 days, BitMine now owns 4.88% of all Ethereum in circulation. By the end of the year, the company plans to push through the 5% ownership mark.

Admittedly, the company's relentless buying of Ethereum over the past year has been impressive. But I'm still not convinced investors should be pouring their money into digital asset treasury companies. Here's why.

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Where is the payoff for investors?

BitMine can be an interesting proxy stock if you're looking for exposure to Ethereum and can't buy ETH directly. After all, the primary goal of BitMine is to buy and hoard as much Ethereum as it can, as fast as it can. So think of an investment in BitMine as a roundabout way to dollar-cost average into ETH.

But where's the payoff for investors? The market cap of BitMine is $14.5 billion, while the value of its Ethereum holdings is now $14.4 billion. In other words, investors are only getting rewarded with a tiny premium for holding BitMine.