South Korean retail investors pour $1.4 billion into BitMine (BMNR)

BitMine has a $12 billion Ethereum reserve.

Korean investors continue to accumulate BitMine shares, even after the stock has fallen by approximately 80% from its peak. This behavior reflects a familiar trend in the Korean capital market: the enduring confidence of individual investors in highly volatile and attention-grabbing assets, particularly those related to cryptocurrencies and digital infrastructure, even after sharp price swings.

South Korea's cryptocurrency culture is known for its approximately 18 million active participants (about one-third of the population), its use of strong leverage, and its preference for high-volatility, story-driven investments.

• Pure ETH investment — A listed instrument that buys and holds ETH with investment capital, offering amplified returns (and risks) compared to spot ETH or ETFs.

• Leveraged alternatives — Traders have poured an additional $566 million into the BitMine Daily Target T-Rex 2X Long ETF, aiming for double the daily performance of BMNR — which is now down about 86% from its September peak, but is still attracting capital inflows.

• Belief in the long-term argument —Tom Lee's constant calls for a “hypergrowth cycle” of ETH (10-15 years), the activation of staking (recent initial stake of $219 million, plans for a full MAVAN rollout in Q1 2026), and the company's continuous accumulation (e.g., over 98,000 ETH added in recent weeks)—keeps the narrative alive.

This behavior reflects the typical investor mentality in South Korea, known as " ant investors, " who often double their cryptocurrency holdings when prices fall sharply, viewing these price drops as buying opportunities rather than signals to exit.

The allure of a treasury

South Korea has long shown a clear preference for indirect exposure to emerging technologies. Regulatory constraints, limited direct access to certain overseas assets, and cultural familiarity with stock trading have driven investors toward listed vehicles that represent broader thematic investments.

Cryptocurrency-linked stocks like BitMine fit perfectly into this framework. They offer exposure to digital assets without direct ownership, trading through familiar brokerage platforms, legal security compared to foreign cryptocurrency exchanges, and the potential for higher growth if the cryptocurrency market recovers.

Risks for retailers

An 80% reduction would significantly alter the company's capital structure, flexibility, and investor base. Recovery from this level would require not only a market recovery but also sustainable operations, access to capital, and favorable macroeconomic conditions.

Cryptocurrency-linked stocks also face a double dose of volatility: volatility in the price of the underlying digital asset and stock market sentiment. Even when cryptocurrency prices stabilize, share dilution, debt repayment, or regulatory pressure can limit growth potential.

Individual investors buying additional shares at lower prices risk relying on past valuations rather than reassessing the business's performance under new conditions.

Our review

The continued accumulation of BitMine shares by South Korean investors after an 80% price drop demonstrates the enduring strength of cryptocurrency narratives in a market driven by individual investors. For believers, this decline represents disproportionate opportunities and growth potential. For skeptics, it highlights the risks of clinging to narratives rather than balance sheets. Whether this belief is sound or will be damaging will depend less on market sentiment—and more on whether BitMine can translate its cryptocurrency exposure into sustainable, economic-cycle-resistant value.

Disclaimer: The information presented in this article is the author's personal opinion in the field of cryptocurrency. This is not financial or investment advice. All investment decisions should be based on careful consideration of your personal portfolio and risk tolerance. The views expressed in this article do not represent the official stance of the platform. We recommend that readers conduct their own research and consult with experts before making any investment decisions.

Compiled and analyzed by HCCVenture

Follow HCCVenture here: https://link3.to/holdcoincventure