Fundstrat co-founder Leads Bitcoin Miner, Transforms into an Ethereum Reserve Company
Fundstrat co-founder Tom Lee is known for his precise and unique forecasting and insights into financial market trends, and he is now personally diving into the crypto industry. According to the announcement, he has officially taken over as chairman of the board of Bitcoin miner BitMine Immersion Technologies and will drive the company’s transformation into an Ethereum reserve company, initiating a $250 million private placement to purchase ETH in bulk:
This is a critical change as crypto assets shift from speculation to financial infrastructure, and we hope to stand at the forefront of this wave.
Reportedly, the private equity fund behind this has a strong capital lineup, including institutions like Founders Fund, Kraken, Galaxy Digital, and Pantera.
Tom Lee defined BitMine on CNBC as 'the Microstrategy of the Ethereum world,' stating that the primary performance indicator (KPI) will be 'the value of ETH held per share,' while enhancing that figure through three main strategies: 'company cash flow reinvestment, capital market operations, and the rising price of ETH in the market.'
Tom Lee: Ethereum as the Backbone of Stablecoins, Companies Will Rush into Infrastructure
In an interview, Tom Lee compared the importance of the current relationship between ETH and stablecoins to ChatGPT amid the AI craze:
Stablecoins are the ChatGPT of the crypto industry, spreading virally from consumers and banks to various businesses, all built on the Ethereum network.
He believes that if companies want to secure a foothold in the stablecoin ecosystem in the future, it is necessary to hold and support the Ethereum network long-term to enhance their participation and influence on core infrastructure.
Tom Lee also mentioned the differences between the underlying consensus mechanisms of Bitcoin and Ethereum (PoW & PoS), emphasizing that network security relies on stakers participating in transaction verification:
In the future, when financial giants like Goldman Sachs or JPMorgan issue stablecoins on Ethereum, they will undoubtedly place greater emphasis on Ethereum’s security and governance structure; at this point, deploying ETH staking plans will be a head start.
Not just Bitcoin: The Trend of Diversifying Corporate Reserve Assets Accelerates
BitMine's actions are not an isolated case; gaming company SharpLink Gaming began its Ethereum reserve strategy in May and invited Ethereum co-founder Joseph Lubin to serve as chairman of the board. Additionally, DeFi Development is turning its attention to Solana, preparing to use SOL as its core reserve asset.
This reflects that more and more companies are skipping Bitcoin and turning to the second or even third largest public chain assets for financial allocation, viewing it as an important way to further engage in the cryptocurrency narrative frenzy.
From Crumbling to Potential New Star? BMNR Stock Price Soars Sixfold in a Single Day
Before this strategy was announced, BitMine was merely a mini-listed company with a market value of $26 million, and the BMNR stock price has dropped 45% this year. Now, through Tom Lee's personal image and strategic shift, BMNR has surged 694.8% today, and the future Ethereum reserve plan is expected to bring a turnaround for this previously obscure mining company.
Image Source: (Chain News)
This article is reprinted with permission from: (Chain News)
Original Title: (Wall Street Analyst Tom Lee Takes Over Bitcoin Miner BitMine, Investing $250 Million to Create Ethereum Microstrategy)
Original Author: Crumax
'Wall Street Giants Move into BitMine Miner! Ready to Invest $250 Million to Create an Ethereum Version of Microstrategy' This article was first published in 'Crypto City'
