Bitmine Stock Surges 130% to $135 on Ethereum Treasury Strategy

Bitmine Immersion Technologies Inc. has experienced a remarkable surge in its stock price, reaching over $135 following the announcement of its Ethereum (ETH) treasury strategy. The company revealed plans to raise $250 million through a private placement, with the intention of using the funds to build a substantial ETH reserve. This strategic move has garnered significant attention and has been met with a positive market response.

The stock's rally was particularly notable, with shares closing at $135 on Thursday, marking a 130% increase from the previous day. However, the stock price experienced a slight decline to $118 during after-hours trading. Despite this minor correction, the overall sentiment remains bullish, as investors are optimistic about the company's new direction and its potential impact on the Ethereum market.

Bitmine's decision to focus on Ethereum aligns with the growing interest in ETH treasury companies. The past two days have seen gains in this sector, indicating a broader market trend towards Ethereum investments. The company's bold strategy of raising $250 million and allocating it to an ETH reserve has been well-received, with shares surging from a low of $1 to over $135 within a week. This represents a staggering 13,400% weekly gain, despite some profit-taking by investors.

The announcement of Bitmine's Ethereum-focused treasury strategy has not only boosted the company's stock price but also sparked discussions about the potential impact on ETH prices. As more companies adopt similar strategies, the demand for Ethereum could increase, potentially driving up its value. This development underscores the growing importance of Ethereum in the cryptocurrency landscape and the strategic advantages of holding ETH reserves.

Bitmine's rally to over $135 following the announcement of its Ethereum treasury strategy highlights the company's ambitious plans and the market's positive reception. The significant surge in stock price, coupled with the broader trend towards ETH investments, suggests that Bitmine's strategy could have a lasting impact on the Ethereum market. As the company continues to execute its plans, investors will be closely monitoring its progress and the potential implications for Ethereum prices.

Bitmine's strategy includes a dual approach of holding both Bitcoin (BTC) and Ethereum. The company already holds 154.2 BTC, acquired at prices above $106,000 since June 16. Additionally, Bitmine has hidden hashrate that would produce additional BTC inflows in the coming six months. The company aims to use its private placement proceeds, along with BTC, to acquire more ETH and build its treasury. Bitmine plans to acquire crypto for long-term holding, from a mix of BTC mining operations or from raising additional capital.

Bitmine's operations include direct mining, contracts in the synthetic market, and hashrate as a financial product. The company also works as a mining consultant and owns data centers in low-cost locations in Texas. This diversified approach positions Bitmine as a key player in the cryptocurrency mining and treasury space.

Despite the positive market response, ETH remains a speculatively traded asset, with deliberate trading against long positions leading to a depressed market price trading within a range around $2,500. ETH traded at $2,557.21, far from the exuberance of treasury company shares. The token stalled just under $2,700, falling on selling pressure. For bullish traders, ETH was supposed to make a hike to $3,000, though for now the rallies are cut short. Ethereum has seen increased staking and on-chain activity, with growing demand for DeFi. The network is slowly regaining its activity, mostly based on stablecoin usage. USDT and USDC drive traffic on Ethereum, as part of both centralized and decentralized activity.

The recent treasuries are still not buying at the scale of Strategy, which is already affecting the BTC market. However, the appearance of a new wave of altcoin treasury companies may extend the 2025 crypto rally. Companies have already announced SOL and BNB treasuries, but ETH may be a prime candidate for reserves with guaranteed staking rewards.