BitMine Stock Soars 700% After $250 Million Raise For Ethereum Treasury

[Ben Graham]

Tom Lee, the market strategist known for his insightful predictions on Bitcoin (BTC) and broader crypto prices, has taken on the role of chairman of the board at BitMine Immersion Technologies, a Bitcoin mining company now setting its sights on becoming the largest publicly traded holder of Ethereum (ETH). 

Tom Lee Appointed Chairman At BitMine

Lee’s appointment comes alongside an ambitious plan to raise $250 million in a private placement aimed at implementing a strategy that positions Ethereum as the primary treasury reserve asset, while still maintaining its core Bitcoin mining operations.

This initiative reflects a growing trend within the financial services sector, where the convergence of traditional finance and cryptocurrency is gaining momentum, further highlighted by President Trump’s decision to establish a strategic crypto reserve. 

Lee highlighted this shift during an appearance on CNBC’s “Squawk Box,” stating, “The financial services industry and crypto are converging, and it really started with stablecoins.” 

Lee likened stablecoins to the “ChatGPT of crypto,” emphasizing their widespread adoption among consumers, businesses, and financial institutions, including major players like Visa. 

Interestingly, stablecoins have gained a major victory in Congress last week with the passage of the GENIUS Act which aims to provide a new regulatory framework for these crypto assets.

Transforming Into An Ethereum Treasury Powerhouse

According to Lee, Ethereum serves as the foundational architecture for stablecoins, making it crucial for BitMine to accumulate ETH in order to influence and secure its position within the network. 

The company’s strategy will include monitoring the value of Ethereum held per share as a key performance metric, akin to Strategy’s (previouisly MicroStrategy) well-known “BTC Yield” metric for Bitcoin. 

During his interview, Lee explained that BitMine plans to enhance the value of ETH per share through reinvestment of cash flows, capital market activities, and the appreciation of Ethereum itself.

As more companies explore treasury management strategies beyond Bitcoin, BitMine is not alone in its pivot. It joins other firms like SharpLink Gaming, which initiated its own Ethereum treasury strategy earlier this year, and DeFi Development, which is focusing on Solana. 

This announcement sparked a major surge for the Bitcoin mining company which started the day with a market capitalization of just $26 million. However, following Lee’s interview, the number skyrocketed beyond the $200 million mark.  

BitMine’s stock, trading under the ticker name BMNR, also saw a major surge on Monday closing the day at $33.90 per share. According to Yahoo Finance data, this means a nearly 700% surge for the mining firm’s shares. 

On the other hand, Ethereum has retraced 1% below the key $2,500 level in the 24-hour time frame to its current price of $2,470 per token.

Featured image from DALL-E, chart from TradingView.com