BitMine Immersion Technologies (BMNR), a listed company focusing on BTC mining, saw its stock price surge by 694.8% after announcing a $250 million Ethereum (ETH) Treasury strategy.
The company also appointed Tom Lee, Chief Investment Officer of Fundstrat Capital, as its Board Chairman.
BitMine Announces Ethereum Asset Plan
According to the press release, BitMine plans to raise $250 million through a private placement. The transaction includes selling over 55 million shares at $4.50 per share. The transaction is expected to close on July 3rd.
"The private placement will accelerate BitMine's Treasury holdings immediately after the first Treasury purchase on June 9, 2025. FalconX, Kraken, Galaxy Digital will collaborate with the company alongside BitGo and Fidelity Digital to grow the global Ethereum Treasury strategy." – Said Jonathan Bates, CEO of BitMine.
BitMine plans to use the net proceeds to acquire Ethereum as the company's primary Treasury reserve asset. By holding ETH, BitMine aims to position itself as one of the largest publicly traded holders of the second-largest cryptocurrency.
"Ethereum's distinctive feature is enabling smart contracts, with most stablecoin payments, tokenized assets, and decentralized finance applications traded on Ethereum," the company noted.
This Treasury also provides access to Ethereum's native blockchain functionality, Staking, and DeFi applications. These features will allow BitMine to generate additional value from ETH holdings while focusing on Bitcoin mining and other core business operations.
"Goal: Make BitMine the largest listed ETH holder, actually generating revenue, similar to what MicroStrategy did with BTC. Lee calls this model 'MicroStrategy of Ethereum'." – Wrote analyst Eric Conner.
Notably, the announcement drove the company's stock price. According to Google Finance data, BMNR's value closed at $33.90, a 694.8% increase. The positive momentum continued in after-hours trading, with the stock rising an additional 40.4%.
The company now joins SharpLink Gaming, Bit Digital, and BTCS in adopting Ethereum as a reserve asset.
Will Ethereum Grow with Stablecoin Expansion?
More companies choosing Ethereum over Bitcoin reflects growing confidence in Ethereum's long-term potential, particularly driven by recent growth in the stablecoin sector.
Tom Lee, now BitMine's chairman, compared stablecoins to the 'ChatGPT of cryptocurrency', emphasizing their rapidly growing popularity among consumers, merchants, and financial service providers.
Previously, U.S. Treasury Secretary Scott Bessent predicted the stablecoin market could grow to $2 trillion by 2028. Ethereum, being the primary blockchain for stablecoin transactions, is well-positioned to benefit from this growth.
"One of BitMine's key performance indicators going forward will be increasing the value of ETH held per share, achievable through a combination of reinvesting cash flow, capital market activities, and ETH value changes," he added.
Lee is not alone in his optimism about Ethereum. Experts anticipate altcoins will reach new heights as stablecoins gain attention.
"Recent movements related to the GENIUS bill, which provides a long-standing regulatory framework for stablecoins, have been a major catalyst for ETH's recent performance. As the primary hub for most stablecoin trading volume, Ethereum will benefit significantly from these policy developments due to its role in supporting stablecoin infrastructure." – MEXC Research told BeInCrypto.
MEXC Research suggested ETH could experience further growth in the coming weeks as geopolitical conditions stabilize and global liquidity improves, leading to improved risk sentiment.
They predicted ETH could rise to $3,000 or even $3,300 if macroeconomic factors remain favorable. However, unexpected events like a 'black swan' scenario could cause it to drop below $2,350, potentially leading to a deeper correction to $2,100.
