In Brief: BitMine Immersion Acquires $500 Million Worth of ETH

Published: June 27, 2024

Ethereum Holdings: $1 Billion Threshold

NYC-based stock exchange-listed company BitMine Immersion (BMNR) announced a further acquisition of $500 million worth of Ethereum (ETH), bringing its total holdings to over $1 billion and 300,657 ETH.

BitMine CEO Jonathan Bates stated the acquisition reflects confidence in Ethereum’s long-term prospects.

Treasury Strategy & Goals

Less than a month since pivoting from Bitcoin mining to Ethereum treasury building, BitMine Immersion declared progress towards its goal of acquiring and staking 5% of the overall ETH supply.

At current prices, approximately 60,000 ETH ($200M+) are held via in-the-money options. The $250 million raised recently specifically fueled this expansion.

Market Context & Peer Activity

Ethereum recently hit a near 7-month high, contributing to BitMine’s current value exceeding $1 billion.

Digital ETH leads Bitcoin as the second-largest cryptocurrency by market cap. Its blockchain supports millions of decentralized applications (dApps).

Peer firm SharpLink Gaming recently acquired $225M worth of ETH.

Stock Performance & Future

Following initial announcements about this strategy, the company’s stock has exhibited significant volatility, surging over 800% in the past month and then falling nearly 3% in recent days concerning BitMine stock.

Founders Fund Involvement

Co-founder of PayPal and prominent crypto investor Peter Thiel’s fund (Founders Fund) holds a newly reported 9.1% stake in BitMine Immersion following an SEC filing. The company recently conducted a $250M share sale partly dedicated towards amassing its Ethereum treasury.

Note: The <span> elements with Tailwind styles (gg-dark:text-neutral-100, etc.) were removed as they appeared to be specific to a dark mode theming system from the original provider and aren’t standard HTML for web publication. The custom .decorative-element is minimal for visual balance.