Bitmine Immersion Technologies (BMNR) shareholders face a critical vote on Jan. 15 that could determine whether the company can execute its aggressive Ethereum (ETHUSD) accumulation strategy.
The digital asset treasury company is asking investors to approve an increase in authorized shares from 500 million to 50 billion, and Chairman Tom Lee is making an unusually direct appeal for shareholder support.
Lee, the well-known Fundstrat analyst who chairs Bitmine’s board, released a video message explaining the rationale behind the proposal. He emphasized the capital raise will help create financial flexibility for three strategic initiatives, which include:
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Conducting capital markets activities, including at-the-market offerings and convertibles,
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Pursuing opportunistic acquisitions
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Enabling future stock splits as the share price appreciates.
The stock split rationale reflects Bitmine’s bullish conviction about Ethereum’s future price trajectory. The company currently holds 4.1 million ETH valued at roughly $12.1 billion, which accounts for 3.41% of the total ETH supply.
Bitmine has observed that its share price tracks Ethereum movements, with a coefficient of 0.015 times the ETH price, plus the accretion of ETH per share. Using this framework, Lee outlined scenarios where Ethereum reaches $22,000, $62,500, or even $250,000, which would imply Bitmine share prices of $500, $1,500, or $5,000, respectively. At those levels, the company would need stock splits ranging from 20-to-1 up to 100-to-1 to keep shares accessible to retail investors.
Bitmine has become one of the most actively traded stocks in America, with an average daily dollar volume of $980 million, ranking 47th among all U.S.-listed companies. Valued at a market cap of over $13 billion, Bitmine is a blockchain technology company primarily based in the United States. Let’s see if the crypto stock should be a part of your equity portfolio right now.
The digital asset landscape is shifting, and Bitmine is a company that has taken a page from the MicroStrategy (MSTR) playbook. Traditionally known for its Bitcoin (BTCUSD) mining operations, Bitmine has transformed into a premier Ethereum treasury platform. Led by Wall Street veteran Tom Lee, the company is executing a strategy it calls the “Alchemy of 5%,” an ambitious goal to own 5% of the total Ethereum supply eventually.
