The strong Ethereum accumulation strategy has helped BitMine's stock surge. Reports from Pantera Capital indicate that the company significantly increased its Ethereum per share (EPS) just in the first month of implementing its ETH-focused strategy.
Pantera commented:
"BitMine has accumulated more ETH in the first month than Strategy did in the first six months of implementing its Bitcoin strategy."
At the end of June, BitMine's stock was trading at $4.27 per share, slightly above its net asset value (NAV) of $4 per share. By August, the stock price had skyrocketed to $51, equivalent to an increase of 1,100% in just over a month.
According to Pantera, this price increase mainly results from three factors: the amount of ETH per share increased by about 60%, the price of Ethereum rose from $2,500 to $4,300 (an increase of about 20%), and the remainder came from NAV expansion (about 20%).
Data from Google Finance shows that BitMine's stock continues to rise and is currently trading near $60.
BitMine expands stock offering by $20 billion to boost Ethereum accumulation
BitMine, the world's largest holder of Ethereum, filed with the U.S. Securities and Exchange Commission (SEC) on August 12 to expand its stock offering by an additional $20 billion.
This registration adds to the previously announced $4.5 billion 'at-the-market' (ATM) stock issuance program, raising BitMine's total fundraising value to approximately $24.5 billion — nearly 5 times the previous amount. Upon completion, the company expects to have about 173.5 million outstanding common shares.
According to the filing, the raised capital will be used for working capital, additional Ethereum purchases, debt repayment, investments in income-generating assets, and other business needs.
This fundraising expansion comes less than 24 hours after BitMine announced it had purchased an additional 317,126 ETH in the past week, bringing its total ETH holdings to 1.15 million ETH — valued at over $5 billion at current prices. Observers believe this strategy could enable BitMine to own up to 5% of the total Ethereum supply.
