TLDR
- BitMine raised $365 million selling shares at $70 each, a 14% premium to market price
- Company holds 2.4 million ETH worth $10.9 billion, controlling over 2% of total supply
- Tom Lee leads strategy to acquire 5% of all ethereum through “alchemy of 5%” plan
- Additional warrants could raise $913 million more if exercised by March 2027
- Stock traded down 9% despite successful premium fundraising round
BitMine Immersion Technologies completed a major fundraising round Monday, selling stock at a premium to expand its ethereum treasury. The company raised $365 million through institutional investors eager for ethereum exposure.
The crypto treasury firm sold 5.2 million shares at $70 each to institutional buyers. This represents a 14% premium over the stock’s September 19 closing price of $61.29. Chairman Tom Lee called the premium pricing “materially accretive” to existing shareholders.
BitMine also issued warrants for 10.4 million additional shares at $87.50 per share. These warrants expire March 22, 2027 and could generate another $913 million in proceeds. Combined, the offerings could raise up to $1.28 billion total.
The company disclosed treasury holdings worth $11.4 billion as of September 21. This includes 2.4 million ETH valued at $10.9 billion, 192 bitcoin, $345 million cash, and $175 million in Eightco Holdings equity.
Targeting 5% of Ethereum Supply
Lee outlined BitMine’s ambitious goal to control 5% of ethereum’s total supply. The former Fundstrat strategist calls this the “alchemy of 5%” strategy. BitMine currently holds over 2% of all ether tokens.
“Wall Street and AI moving onto the blockchain should lead to a greater transformation of today’s financial system,” Lee said. “The majority of this is taking place on Ethereum.”
BitMine describes itself as the world’s largest public ethereum holder. The company claims to be the second-largest crypto treasury overall, behind only MicroStrategy’s bitcoin holdings.
The 14% premium reflects growing institutional demand for ethereum exposure through public markets. BitMine says it offers the only large-cap US stock providing direct ethereum investment access.
Institutional Backing Grows
BitMine’s investor base includes prominent crypto and venture capital firms. Backers include ARK’s Cathie Wood, Founders Fund, Bill Miller III, Pantera Capital, Kraken, DCG, and Galaxy Digital.
Lee serves as BitMine chairman while maintaining roles as Fundstrat head of research and chief investment officer. The dual positions give BitMine connections to traditional Wall Street investors seeking crypto exposure.
The offering is expected to close September 23 subject to standard conditions. Despite the successful fundraising, BMNR shares fell 9% to $55.79 Monday morning following the announcement.
BitMine’s strategy mirrors MicroStrategy’s bitcoin accumulation approach but focuses on ethereum instead. The company believes ethereum will benefit most from institutional blockchain adoption.
