BitMine Stock Soars 511.02% After $250 Million Ethereum Bet

BitMine Immersion Technologies, a company that recently uplisted to the NYSE American, has made a significant strategic shift by announcing a $250 million private placement. This move is aimed at accumulating Ethereum (ETH) as its primary treasury reserve asset, marking a departure from its previous focus on Bitcoin mining. The company plans to issue 55,555,556 common shares at $4.50 each, with the offering expected to close by July 3, pending customary approvals from the NYSE American.

The investment firm MOZAYYX is leading the private placement, with participation from several high-profile investors, including Founders Fund, Pantera Capital, Republic Digital, Kraken, Galaxy Digital, FalconX, DCG, and Diametric Capital. Notably, Thomas Lee, co-founder of Fundstrat Global Advisors, also participated in the deal and was named Chairman of BitMine’s Board of Directors. Lee described Ethereum as a “higher beta” asset than Bitcoin, citing its foundational role in stablecoin transactions, decentralized finance (DeFi), and tokenized assets. He referenced comments from U.S. Treasury Secretary Scott Bessent, who projected the stablecoin market could grow from $250 billion today to $2 trillion by 2028, suggesting that Ethereum should benefit from this growth.

BitMine will work with FalconX, Kraken, and Galaxy Digital to manage execution, liquidity, and infrastructure support for its Ethereum strategy. BitGo and Fidelity Digital Assets have been selected as custodians for BitMine’s ETH treasury holdings. This move represents a major escalation in ambition for BitMine, as the firm now plans to increase its crypto reserves by more than 16-fold, with Ethereum becoming its primary treasury reserve asset. The company’s stock price jumped from $4.26 to $26.06, representing a 511.02% intraday increase, lifting the company’s market cap from under $31 million to approximately $158.87 million.

While the private placement is expected to dilute existing shareholders, the firm’s aggressive ETH strategy could help position it among the leading corporate holders of Ethereum. However, BitMine faces stiff competition in this space. SharpLink, a Minnesota-based affiliate marketing firm, recently disclosed that it holds 188,478 ETH following its second acquisition. The Ethereum Foundation remains the largest known institutional holder, with 213,072 ETH, currently worth more than $525 million based on ETH’s trading price of approximately $2,487.