BitMine Immersion Technology (BMNR) shares surged in pre-market trading after the crypto treasury firm announced plans to raise as much as $20 billion to buy more Ethereum (ETH-USD). The move could make it one of the largest holders of the world’s second-biggest cryptocurrency.
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The company, led by Fundstrat co-founder Thomas Lee, already holds nearly $5 billion in ETH as of Aug. 10. Its long-term goal is to acquire 5% of the entire ETH supply, a stash worth roughly $25 billion at today’s prices.
BitMine Scales Up Its ETH Treasury
BitMine has wasted little time in scaling up its treasury strategy. The firm previously authorized $4.5 billion in stock sales through deals with Cantor Fitzgerald and ThinkEquity, nearly exhausting that allocation. Now it is dramatically increasing its ambitions with the new $20 billion target.
The plan involves continuing to sell shares into a market that has been showing strong appetite for BMNR stock. High trading volumes, averaging $2.2 billion daily last week, mean the company can raise capital with less downward pressure on its share price. BMNR ranked as the 25th most traded U.S.-listed stock last week, surpassing heavyweights such as JPMorgan (JPM) and Micron (MU).
BitMine Competes for Crypto Dominance
BitMine’s aggressive buying spree is designed to accumulate and stake ETH, earning yield while competing with other digital asset treasury plays such as SharpLink Gaming. Its rivals are watching closely since the scale of this buying program could move markets if executed in full.
Chairman Tom Lee says BitMine is “leading crypto treasury peers by both the velocity of raising crypto NAV [net asset value] per share and by the high trading liquidity of our stock.” He sees both as critical advantages as the firm pushes toward its 5% ETH ownership goal.
BitMine Drives Market Momentum
The announcement helped extend BitMine’s recent rally. BMNR shares were up over 10% in pre-market Tuesday, building on Friday’s near 25% gain. That buying momentum has coincided with ether hitting new cycle highs above $4,300 over the weekend, aided by aggressive accumulation from digital asset treasuries like BitMine.
If the $20 billion program is completed, BitMine would strengthen its position as one of the most influential players in ETH markets. This is a bet that could pay off handsomely if Ethereum’s price continues to climb in the next bull cycle. However, with such a massive move, the gamble also comes with much more risk if crypto markets turn against them.
Is BitMine a Good Stock to Buy?
Based on TipRanks data, ThinkEquity analyst Ashok Kumar initiated coverage on BitMine Immersion Technologies with a Buy rating and a $60 price target. This target implies a potential upside of about 3.48% from the company’s most recent close at $57.98.
