Bitmine stock surges 3,000% on ETH treasury strategy

Shares of Bitmine Immersion (BMNR), led by Fundstrat’s Thomas Lee, have surged more than 3,000% in under a week after announcing a $250 million fundraising round to purchase ether (ETH), making it the latest crypto proxy stock in the market. On Thursday alone, the stock doubled, exceeding $140.

The private placement, priced at $4.50 per share and set to close today, attracted major institutional investors including Founders Fund, Pantera, FalconX, Kraken, Galaxy Digital, and DCG. Initially, Bitmine focused on crypto mining using immersion cooling and held $16 million worth of bitcoin before the capital raise.

The company is now repositioning itself as a publicly traded proxy for ether exposure, similar to how MicroStrategy became a leveraged play on bitcoin.

However, investors are urged to exercise caution. A similar case was Sharplink Gaming (SBET), which jumped over 4,000% following a $450 million fundraising announcement, only to plunge more than 90% just weeks later as the hype faded.