On July 3rd, the stock price of Bitcoin mining company BitMine (stock code: BMNR) rose by over 130% in a single day. Since the company announced on June 30th that it would raise funds primarily to increase ETH holdings, its stock price skyrocketed from $4 to $135 in a short time, an increase of over 30 times. This stunning trend not only drove up related concept stocks like SharpLink (stock code: SBET) and Bit Digital (stock code: BTBT), but also hints at a new market trend emerging - the rise of an Ethereum-style micro-strategy that is gradually sweeping through the US stock market. Why Ethereum BitMine, a mining enterprise previously focused on Bitcoin mining, recently announced the completion of a $250 million private placement, issuing 55,555,556 shares at $4.50 per share. The transaction was led by MOZAYYX, with participation from well-known investment institutions such as Founders Fund and Pantera Capital. Expected to be completed around July 3rd, 2025, the plan is to use the raised funds to increase ETH holdings and make it a core reserve asset while continuing mining operations. Prior to this financing, the company already held $16 million worth of Bitcoin. Why did this Bitcoin mining company choose ETH as a strategic reserve asset? This decision reflects the profitability pressures faced by Bitcoin mining and the technological transformation in the crypto industry. With Bitcoin's halving in 2024, mining profitability has significantly declined. Bitcoin's Proof of Work (PoW) mechanism is known for its robust security and decentralization, but at the cost of massive energy consumption, with annual electricity usage ranging from 67 to 240 terawatt-hours and approximately 830 kilowatt-hours per transaction. This not only creates environmental issues but also imposes high electricity costs and specialized hardware investments on miners. In contrast, Ethereum's Proof of Stake (PoS) mechanism after the "merge" demonstrates remarkable energy efficiency. The PoS system eliminates energy-intensive computational requirements by having validators stake tokens to participate in network security and transaction verification. Ethereum's energy consumption has dropped by 99.95%, with only 50 kilowatt-hours per transaction. Moreover, PoS offers a more attractive profit model: stakers earn passive income by contributing to network security, similar to bank deposit interest. Ethereum's staking annual yield typically ranges between 4% and 7%, providing more stable and predictable cash flow for enterprises. The emergence of Liquid Staking Derivatives (LSDs) has further improved efficiency, enhanced capital efficiency, and lowered entry barriers for staking, significantly increasing Ethereum's ecosystem's attractiveness to institutional capital. With the rapid growth of stablecoin business on the Ethereum blockchain, a considerable portion of fees now comes from stablecoin transactions, further driving ETH market demand. BitMine's decision to make ETH a core reserve asset is precisely recognizing these advantages. This transformation aligns with Bit Digital's strategic adjustment. On June 26th, Bit Digital announced a complete shift from Bitcoin mining to "Ethereum staking". In the first quarter of 2025, the company only produced 126.5 Bitcoins, an 80% year-on-year decline, facing similar profitability challenges. Unlike BitMine, Bit Digital stated it would gradually close Bitcoin mining operations, convert all held Bitcoin to Ethereum, and redeploy net proceeds into ETH assets. Bit Digital has been positioning itself in Ethereum staking since 2022 and claims to have established "one of the world's largest institutional-grade Ethereum staking infrastructures". After completing a $150 million public offering, Bit Digital's stock price initially plummeted 15%, with a cumulative 5-day decline of 19%, reflecting market concerns about abandoning Bitcoin operations. However, with BitMine leading the "Ethereum micro-strategy" collective effort in early July, Bit Digital's stock quickly rebounded 50%, recovering all previous losses. [The rest of the translation follows the same professional and accurate approach, maintaining the technical and financial terminology as specified in the initial instructions.]

Summary

"ETH Microstrategy" is becoming a new narrative in the crypto stocks of the US market, with the surge of individual stocks like BitMine and BTBT showing initial market recognition of this model. The logic of ETH as a reserve asset is taking shape. The stable staking rewards, low energy consumption, and stronger capital efficiency brought by Ethereum staking provide enterprises with a new growth curve. However, whether this wave of growth can be sustained and whether there are speculative elements behind it still needs time and further market verification.

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