BitMine Briefly Surges After Massive Ethereum Purchase
Shares of Bitcoin mining firm BitMine Immersion Technologies surged on Monday after the company’s Ethereum holdings surpassed the $500 million mark. BitMine had raised $250 million in a private placement earlier this month specifically to grow its ETH treasury. At one point, the stock jumped to $59.00 — a 45% increase from its previous close.
Stock Gains Wiped Out by End of Day
Despite the mid-day rally, BitMine’s share price closed at just $41.02, barely up from the previous trading day. This sharp reversal mirrored Ethereum’s own price volatility, which pushed BitMine’s total ETH holdings below the $500 million threshold by day’s end. Investor enthusiasm cooled rapidly as ETH prices began to slide. Analysts noted that such short-term volatility may continue to affect crypto-linked equities in the absence of broader market stability.
ETH Strategy Drives Wild Price Swings
The company’s Ethereum strategy has created significant price swings in BitMine stock. Over the past month, shares have ranged from as low as $4.26 to as high as $135. While the stock is up 727% over the past 30 days, it has also lost nearly 62% in the past week due to erratic investor sentiment and crypto market turbulence.
Leadership Backs Ethereum Focus
BitMine’s board chairman, Thomas Lee — a prominent analyst and co-founder of Fundstrat Global Advisors — reaffirmed support for the Ethereum-centric strategy. He declared that crossing $500 million in ETH holdings “validates our mission to increase our stake in the Ethereum network.”
Lee, who became chairman after the ETH-focused stock sale announcement, has been vocal about Ethereum’s utility, particularly in tokenization. He referenced Robinhood CEO Vlad Tenev’s description of tokenization as “the greatest capital markets innovation since the central limit order book.”
Ethereum’s Growing Institutional Appeal
According to BitMine, Ethereum’s foundational role in tokenized finance, NFTs, and decentralized apps makes it the most attractive layer-1 blockchain. “Ethereum is the layer-1 blockchain with the greatest share,” Lee emphasized.
The firm currently holds 163,142 ETH, valued at roughly $490 million at Ethereum’s current market price of just over $3,000 per token.
Crypto Miners Shift Strategy Amid Headwinds
BitMine is among several mining companies exploring alternative strategies in the face of declining Bitcoin mining rewards post-halving and rising operational costs. With Ethereum offering more use cases and growth potential, treasury-focused strategies are gaining traction.
Other companies, such as BIT Mining and SharpLink Gaming, have also adopted similar approaches. BIT Mining saw a 143% stock jump last week after announcing a Solana treasury, while SharpLink’s pivot to ETH helped boost its shares over 300% year-to-date.
Historical Comparison to Bitcoin Treasury Models
BitMine’s pivot is reminiscent of earlier treasury strategies in the crypto space, including those pioneered by software firms acquiring large Bitcoin positions. “We have witnessed the reflexive benefit of acquiring large holdings,” Lee noted.
He drew parallels between the so-called ‘sovereign put’ effect of MicroStrategy’s Bitcoin accumulation and the potential for similar protection and appeal that Ethereum treasuries could generate with substantial ownership — possibly even attracting attention from nation-states.
Ethereum’s Role in Web3 and Tokenization
Ethereum remains a core infrastructure for the Web3 ecosystem. With a market cap of over $360 billion, it’s second only to Bitcoin. Developers use Ethereum to power smart contracts, decentralized apps, games, NFTs, and stablecoins — making it a logical asset for companies seeking blockchain-native exposure.
BitMine’s aggressive ETH treasury play may be volatile, but it also signals a broader shift in crypto firm strategies as the market matures and diversifies beyond Bitcoin.
