BitMine Immersion Doubles Ethereum Holdings

BitMine Immersion Technologies, which is listed on the NYSE, announced on Monday that it now possesses nearly $500 million worth of ether. This marks a significant shift as the company, originally a bitcoin miner, intensifies its focus on a strategy centered around Ethereum. Based in Nevada, BitMine revealed it has acquired over 163,000 ETH following its recent capital raise, spending double the $250 million generated from its share sales. This purchase places BitMine among the largest public holders of ether, ranking second among Ethereum treasuries, only behind the Ethereum Foundation and SharpLink, as reported by DefiLlama. In June, BitMine adopted an "asset-light" treasury model, committing to increase the amount of ether held per share through activities in capital markets, staking yields, and reinvested operational cash flow. Following the announcement, the firm's stock surged 400%, bolstered by expectations that this strategy will enhance shareholder value while also contributing to the decentralization of Ethereum by taking supply off the market. Tom Lee, the board chairman and founder of Fundstrat, compared this approach to Strategy’s well-known bitcoin investment. He argued that significant corporate treasuries can create a beneficial feedback loop, especially as institutional demand grows. He noted that Strategy's 597,000 BTC reserve acts as a "sovereign put" for countries seeking exposure to bitcoin. Lee remarked that ETH treasuries, which encapsulate 5% of the total ETH supply, could similarly benefit from a "Wall Street put." BitMine is considering further capital market opportunities to expand its Ethereum position, although it has not specified any additional purchase targets. In Monday’s trading session, shares of BMNR rose by 15%, while the price of ether hovered around $3,066, marking an increase of almost 3% over the previous 24 hours, according to The Block's ETH price report. Disclaimer: The Block is an independent media outlet providing news, research, and data. As of November 2023, Foresight Ventures is a majority investor in The Block and has investments in other crypto companies. Crypto exchange Bitget is a major Limited Partner for Foresight Ventures. The Block operates independently to provide objective information about the crypto industry.