BitMine Reaches $500 Million in Ethereum Holdings Days After Funding Close

BitMine Immersion Technologies announced Monday it has accumulated over $500 million worth of Ethereum, reaching 163,142 ETH valued at approximately $3,072.67 per token just five days after closing its $250 million private placement .

The rapid deployment of capital demonstrates the mining company's aggressive execution of its Ethereum treasury strategy. BitMine closed its initial funding round on July 9th and has quickly moved to establish a major position in the cryptocurrency market.

Thomas Lee of Fundstrat, who was appointed chairman of BitMine's Board of Directors, drew parallels between the company's Ethereum accumulation and Strategy's Bitcoin holdings strategy. Lee argued that large cryptocurrency holdings can create strategic advantages for public companies.

"Among Bitcoin treasury companies, we have witnessed the reflexive benefit of acquiring large holdings. Microstrategy (NASDAQ-MSTR), the leader, has accumulated more than 597,000 Bitcoin (per Microstrategy.com website). Such sizable holdings has created a 'sovereign put' for the company, meaning a nation-state views MSTR holdings as attractive if a nation ever wanted to acquire 5% of the Bitcoin network," Lee said.

"Similarly, ETH Treasuries, which accumulate 5% of ETH supply, can benefit from a similar 'Wall Street put.' And even Vlad Tenev, CEO of Robinhood, recently said 'tokenization is the greatest capital markets innovation since the central limit order book' showing how Wall Street is converging onto crypto. And Ethereum is the layer 1 blockchain with the greatest share," Lee added.

CEO Jonathan Bates said the rapid accumulation validates the company's pivot toward Ethereum, stating that "Wall Street is getting 'ETH-pilled.'" The company had previously announced its intention to use proceeds from the private placement to acquire ETH as its primary treasury reserve asset.

BitMine's stock is currently trading at $42.88, down from a peak of $135 reached on July 3rd but still representing substantial gains from pre-announcement levels of around $4.50.

The company's treasury holdings have increased by over 16 times following the transaction, transforming BitMine from a traditional mining operation focused on Bitcoin into one of the largest publicly traded holders of Ethereum. The $250 million raise was led by MOZAYYX with participation from prominent investors including Founders Fund, Pantera, FalconX, and Galaxy Digital.

BitMine's performance metric focuses on increasing ETH held per share through reinvestment of cash flows, capital market activities, and staking yields available on the Ethereum network. The approach represents a significant departure from traditional Bitcoin mining operations and positions the company to benefit from Ethereum's smart contract capabilities and decentralized finance ecosystem.