BitMine Immersion Technologies (BMNR), under the leadership of renowned investor Tom Lee, has successfully raised $365 million by offering shares at $70 each. This strategic move aims to significantly bolster the company’s already substantial Ethereum (ETH) treasury, now exceeding 2% of the total supply of Ether.
On Monday, BitMine disclosed that its treasury has been appraised at an impressive $11.4 billion as of September 21. This includes a staggering possession of 2,416,054 ETH valued at approximately $4,497 per token, in addition to 192 BTC worth around $108,783.53, $345 million in cash reserves, and a $175 million equity investment in Eightco Holdings. This positions BitMine as the largest publicly traded Ethereum holder and the second largest overall cryptocurrency treasury, following closely behind Strategy Inc., led by Michael Saylor.
Tom Lee, who serves as both the chairman of BitMine and the head of research at Fundstrat, expressed his ambitious goal for the company. He aims for BitMine to acquire 5% of the total ETH supply, a term he has dubbed the “alchemy of 5%.” Lee believes that the integration of Wall Street and artificial intelligence (AI) into blockchain technology will foster a significant evolution in the financial landscape, with much of this innovation hinging on the Ethereum network.
To facilitate the expansion of its treasury, BitMine announced a securities purchase agreement with an institutional investor, encompassing the sale of 5.2 million shares of common stock priced at $70. This figure represents a notable premium of about 14% over the company’s closing share price on September 19. Additionally, the agreement includes warrants for up to 10.4 million additional shares, which could further enhance the financial boost to the company at an exercise price of $87.50.
The total proceeds from this offering could reach up to $1.28 billion when combining both the initial sale and potential warrant exercises. Lee emphasized that the funds raised will primarily be allocated towards increasing BitMine’s Ethereum holdings, highlighting that the elevated stock price is significantly beneficial for existing shareholders.
The heightened institutional demand for BitMine’s shares underscores the growing interest from traditional financial players in Ethereum, as they begin to incorporate blockchain technology into their infrastructures. By diversifying its treasury and solidifying its position in the crypto market, BitMine is strategically aligning itself to capitalize on the potential growth of Ethereum and the broader cryptocurrency ecosystem.
As of 11:13 a.m. ET on the day of the announcement, BitMine’s stock was trading around $55.79, reflecting a 9% decline from the previous trading session, according to Google Finance data.
With this latest capital infusion, BitMine reinforces its commitment to Ethereum and aims to carve out a pivotal role in the evolution of cryptocurrency as mainstream adoption accelerates.
