BitMine's "Alchemy of 5%": Corporate Titan's Quest to Control Ethereum's Future

BitMine Immersion Technologies, a prominent crypto treasury company focused on Bitcoin and Ether, has disclosed that its Ethereum (ETH) holdings now exceed 2% of the total supply, amounting to 2.416 million ETH valued at approximately $10.1 billionCointelegraph: BitMine holds over 2% of ETH supply, announces $365M offering^[1]. This positions the firm as the largest corporate ETH treasury globally, surpassing entities like SharpLink Gaming, which holds 838,150 ETHThe Block: Tom Lee-bitmine-surpasses-2-per-cent-ethereum-supply^[2]. The company’s total assets, including equity, cash, and crypto holdings, have reached $11.4 billion, placing it among the top crypto treasury firms, trailing only Michael Saylor’s Strategy Inc., which holds 639,835 Bitcoin (BTC) valued at over $74 billionPR Newswire: BitMine Immersion (BMNR) Announces ETH Holdings Exceed 2^[3].

To further expand its ETH reserves, BitMine announced a $365 million fundraising initiative through a registered direct offering. The company sold 5.22 million shares at $70 each—a 14% premium to its Sept. 19 closing price of $61.29—alongside 10.4 million warrants exercisable at $87.50. The warrants could generate an additional $913 million if fully exercised, bringing total potential proceeds to $1.28 billionCoindesk: Tom Lee's BitMine (BMNR) Raises $365M at $70 a Share to^[4]. Chairman Thomas Lee described the premium pricing as a reflection of institutional confidence, with funds earmarked for acquiring more ETH. “The convergence of Wall Street moving onto the blockchain and AI/agent-based AI creating a token economy is generating a supercycle for Ethereum,” Lee statedPR Newswire: BitMine Immersion Technologies, Inc.^[5].

The fundraising follows a $200 million ETH purchase in early September, during which BitMine added 46,255 ETH to its balance sheet, pushing its holdings to 1.5% of the supply by mid-SeptemberCointelegraph: BitMine holds over 2% of ETH supply, announces $365M offering^[6]. Institutional investors, including Cathie Wood’s ARK Invest, have shown support, acquiring 101,950 shares in September. The company’s strategic goal, dubbed the “Alchemy of 5%,” aims to accumulate 5% of the total ETH supply—approximately 6.04 million tokens—by leveraging its capital-raising capabilities and high-trading liquidityThe Block: Tom Lee-bitmine-surpasses-2-per-cent-ethereum-supply^[7].

BitMine’s expansion aligns with broader market trends, as public companies increasingly allocate capital to crypto strategies. Recent data indicates that firms are raising hundreds of millions for blockchain-related ventures, underscoring growing institutional interest in digital assetsPR Newswire: BitMine Immersion (BMNR) Announces ETH Holdings Exceed 2^[8]. The company’s stock has also gained traction, trading an average of $3.5 billion daily and ranking as the 24th most actively traded stock in the U.SPR Newswire: BitMine Immersion (BMNR) Announces ETH Holdings Exceed 2^[9].

Analysts note that BitMine’s aggressive accumulation strategy could amplify its influence in the Ethereum ecosystem. By controlling a significant portion of the supply, the firm may benefit from potential price appreciation driven by increased blockchain adoption and AI integration. However, the success of its $1.28 billion funding target hinges on sustained institutional demand and favorable regulatory developments, such as the SEC’s Project Crypto initiativesPR Newswire: BitMine Immersion (BMNR) Announces ETH Holdings Exceed 2^[10].