BitMine Seeks $20 Billion to Increase Institutional Ethereum Holdings
BitMine Immersion Technologies (BMNR) is advancing institutional Ethereum adoption under the leadership of Tom Lee from Fundstrat. The company plans to raise $20 billion through at-the-market equity sales, increasing its total authorized stock issuance to approximately $24.5 billion. The funds will be used for purchasing Ethereum as a corporate treasury asset.
- BitMine's ETH holdings rose from 1.15 million (valued at $5 billion) in August to over 1.5 million ETH (around $6.6 billion).
- The goal is to control up to 5% of Ethereum’s total supply, creating market scarcity and reducing liquidity.
- Ethereum prices are climbing, nearing $4,400–$4,600, close to its all-time high.
- BitMine's stock has surged significantly this year due to its ETH-focused treasury model.
- Notable investors like Peter Thiel and Cathie Wood support BitMine, citing Ethereum’s staking rewards and DeFi potential.
- Ethereum offers 3–5% annual yield from staking, enhancing its appeal compared to Bitcoin.
Risks include potential shareholder dilution from heavy reliance on equity issuance and regulatory scrutiny as BitMine accumulates a substantial share of Ethereum's supply.
Overall, BitMine is influencing Ethereum's role in global finance as a yield-bearing reserve asset for institutions.