BitMine Shocks Market with 400% Surge on $250 Million Ethereum Treasury Strategy
BitMine Immersion Technologies, a publicly traded Bitcoin mining company, has surprised investors with its stock surging more than 400% in a single day. The move comes shortly after the company announced it had successfully raised $250 million in a private placement to build an Ethereum treasury, a bold move that marks a shift away from the traditional Bitcoin-based model.
The share issuance attracted the participation of a host of big names in traditional finance and crypto venture capital, including Founders Fund, Pantera Capital, Galaxy Digital, and exchange Kraken. Each BMNR share was sold at $4.50, with a total of more than 55 million shares issued. The proceeds will be used to purchase Ethereum and accumulate in the company's treasury.
Along with the capital raise, BitMine also appointed Fundstrat Global Advisors co-founder Tom Lee as Chairman of the Board of Directors. Lee commented: “This deal reflects the rapid convergence between traditional finance and decentralized finance. We are witnessing a new wave of mining and fintech companies looking at blockchain not just as a speculative asset, but as a real financial infrastructure.”
Unlike most crypto mining companies that choose to hold Bitcoin as a reserve asset, BitMine decided to build an Ethereum treasury, a blockchain network that stands out for its scalability and thriving DeFi ecosystem. According to the company, their goal is to leverage protocol-level activities on Ethereum, including staking, stablecoins, and other decentralized services.
Tom Lee calls stablecoins the “ChatGPT of crypto,” a product with immediate application and the potential to change the entire financial sector. “Most stablecoin transactions take place on Ethereum, which makes it the central platform for the future of digital payments and finance,” he said.
BitMine expects one of the most important metrics in the future to be the value of its ETH holdings per share. This strategy will be driven not only by the market price of ETH, but also by reinvesting operating cash flow and exploiting other financial opportunities in the Ethereum ecosystem.
BitMine’s move is not an isolated case. SharpLink Gaming, a gambling marketing platform, recently became the first publicly traded company pursuing an Ethereum treasury strategy. In a June 25 announcement, SharpLink said it had purchased an additional 12,207 ETH worth about $30 million, bringing its total ETH holdings to over 188,000 ETH, or over $460 million at current prices.
BitMine and SharpLink’s simultaneous adoption of Ethereum as a treasury asset represents a significant shift in the perception of the blockchain and finance world. Ethereum is increasingly being viewed as a financial infrastructure platform, with practical utility and the ability to generate revenue from network activity, rather than just “digital gold” like Bitcoin. BitMine shares closed at $4.26 late last week, but quickly climbed to $23.35 on Monday morning, a 447% gain. The market is closely watching to see if the “Ethereum treasury” strategy becomes the next big thing in the digital asset industry, and BitMine is at the forefront of this shift.