Bitmine Immersion Technologies Inc (AMEX:BMNR) shares are plummeting on Tuesday afternoon, dragged down by a marked sell-off across the cryptocurrency market. Here’s what investors need to know.

What To Know: The sharp decline in Ethereum (CRYPTO: ETH) is a primary driver for BMNR’s fall, as the company’s valuation is directly tied to its massive crypto holdings.

The company, which recently announced it holds 2.8% of the total Ethereum supply, operates the world’s largest Ethereum treasury. This strategy, aimed at eventually acquiring 5% of all Ethereum, makes BMNR’s valuation highly sensitive to the token’s market price.

Today, Ethereum fell 5.7%, continuing a two-day rout that has seen its price hit the lowest level since mid-June. As the value of its core asset (3.31 million ETH) erodes, investors are selling off BMNR stock late Tuesday.

The broader crypto crash, which saw Bitcoin (CRYPTO: BTC) dip below $101,000 and trigger over $1 billion in liquidations, has intensified the risk-off move away from crypto-exposed equities like Bitmine.

The drop in popular tech stocks like Palantir, which fell 9% Tuesday despite strong earnings, signals a broader risk-off sentiment. This market-wide profit-taking on high-growth assets is spilling over into speculative investments such as cryptocurrencies and related stocks such as BMNR.

Benzinga Edge Rankings: According to Benzinga Edge stock rankings, BMNR holds a top-tier Momentum score of 99.59.

BMNR Price Action: BitMine Immersion shares were down 7.42% at $39.69 at publication on Tuesday, according to Benzinga Pro data.

Besides going to a brokerage platform to purchase a share — or fractional share — of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For BitMine Immersion it is in the Information Technology sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

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• Palantir Weighs On Wall Street, Bitcoin Slumps 5%: What’s Moving Markets Tuesday?

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