Weekly rise of 30 times! Bitcoin company BitMine spent 250 million to buy Ethereum.

The tear between market capitalization and fundamentals: the capital frenzy behind a 30-fold rise in a week.

Written by: KarenZ, Foresight News

On June 30, BitMine Immersion Technologies (hereinafter referred to as BitMine), a company focused on Bitcoin mining and infrastructure, announced the completion of a $250 million private financing and plans to launch an Ethereum treasury strategy, aiming to become one of the largest publicly listed companies holding ETH globally.

This move has sparked heated discussions in the industry—why has a company that has long focused on Bitcoin suddenly launched an Ethereum treasury strategy? Is it merely a simple asset allocation adjustment, or a deeper bet on the cryptocurrency ecosystem?

Who is BitMine?

BitMine was originally registered in Nevada on August 16, 1995, under the name Interactive Lighting Showrooms, Inc. After several name changes, it has been known as Am/Tex Oil and Gas, Inc., Critical Point Resources, Inc., Renewable Energy Solution Systems, Inc., and RES Systems, Inc. In 2013, it changed its name back to Renewable Energy Solution Systems, Inc.

On April 6, 2020, the predecessor of BitMine merged with the Delaware subsidiary RESS Merger Corp. and relocated to Delaware. Subsequently, RESS Merger Corp. became a subsidiary of Sandy Springs Holdings, Inc., and the company was named Sandy Springs Holdings, Inc. In July 2021, a new management team joined, and the company began to enter the Bitcoin mining business, creating a hosting center using immersion cooling technology for self-mining of Bitcoin and providing equipment hosting services for third parties. In 2022, to better reflect the company's new business focus on Bitcoin mining and hosting services, the company was renamed Bitmine Immersion Technologies Inc., and the stock code was also changed accordingly.

BitMine's multiple name changes reflect the transformation and development of its business. Currently, the company's core services include Bitcoin mining, hash rate trading, Bitcoin reserve management, and enterprise-level consulting services, aiming to provide comprehensive Bitcoin solutions for institutional and individual investors.

• Bitcoin Mining: Operate proprietary immersion-cooled data centers and collaborate with air-cooled data centers, with mining machines distributed in Texas, USA, and Trinidad and Tobago.
• Power Financialization: Treating computing power as a financial asset for buying and selling, providing contractual computing power trading services, helping investors participate in mining profits without the need to directly hold hardware.
• Mining as a Service (MaaS): Providing one-stop mining solutions for listed companies and institutions, including miner leasing, operational management, and financial support, reducing the entry threshold for customers.

At the same time, BitMine is accumulating Bitcoin as a long-term reserve, integrating Bitcoin directly into its treasury system to enhance shareholder value and strengthen its balance sheet. Additionally, BitMine offers Bitcoin treasury management consulting for corporate clients, including custody, compliance, and hedging strategies. According to the BitMine official website, BitMine's custody partners include BitGo and Fidelity Digital Assets.

BitMine was previously publicly traded on the OTC Pink marketplace of OTC Markets Group Inc., which has lenient requirements for companies and does not have excessive disclosure requirements. In September 2023, BitMine upgraded from the Pink market to the OTCQX market, which is the highest tier of OTC stock trading.

On May 16, 2025, BitMine implemented a 1:20 reverse stock split to pave the way for listing on a national securities exchange. In the following month, BitMine announced its public listing on NYSE American (terminating the trading of common stock on OTCQX) under the ticker symbol BMNR. It also raised $18 million through the issuance of common stock and subsequently used all proceeds from the issuance of common stock (net proceeds of $16.34 million) to purchase Bitcoin. Specifically, the company spent $16.347 million to acquire 154,167 Bitcoins at an average price of $106,033. BitMine CEO Jonathan Bates stated, "We have established a Bitcoin vault and fulfilled our commitment to invest 100% of trading profits into Bitcoin."

Why Bet on Ethereum?

BitMine plans to use the latest $250 million in private fundraising to launch its Ethereum financial strategy and become one of the world's largest publicly traded companies holding ETH. The transaction is led by MOZAYYX, with participation from investors such as Founders Fund, Pantera, FalconX, Republic Digital, Kraken, Galaxy Digital, DCG, Diametric Capital, Occam Crest Management, and Thomas Lee.

According to BitMine's statement, "The funds raised from the private placement enable the company to adopt ETH as its primary reserve asset while continuing to focus on core business operations. ETH is the native layer of the Ethereum blockchain. One of Ethereum's key features is its support for smart contracts, with most stablecoin payments, tokenized assets, and decentralized finance applications being traded on Ethereum. By directly holding ETH funds, the company can participate in native protocol layer activities on the Ethereum network, such as staking and DeFi mechanisms." BitMine plans to collaborate with FalconX, Kraken, and Galaxy Digital to advance its Ethereum treasury strategy alongside its existing custody partners BitGo and Fidelity Digital.

"More notably, Thomas Lee, the well-known Wall Street strategist and co-founder of Fundstrat Global Advisors, will also join the BitMine board, serving as the chairman. In the CNBC Squawk Box program, Thomas Lee stated that the underlying foundation of the (majority of) stablecoin industry is Ethereum, and Ethereum is essentially the pillar and framework for stablecoins. Therefore, it is crucial to create a project that accumulates Ethereum."

Thomas Lee is one of Wall Street's most optimistic strategists and has stated that the practicality of Bitcoin and Ethereum will continue to grow by 2025, with Bitcoin expected to break through $150,000 by the end of the year. Thomas Lee's involvement undoubtedly adds endorsement to this strategy and reflects the increasing importance that traditional financial forces place on Ethereum.

The strategic moves of BitMine are not coincidental; they imply a threefold judgment on industry trends.

1. Ethereum as the Infrastructure for Stablecoins and DeFi: Ethereum supports smart contracts and serves as the core platform for the majority of stablecoins (such as USDT, USDC) for payment, tokenized asset trading, and DeFi applications. Thomas Lee likened stablecoins to "the ChatGPT of the cryptocurrency realm," and Ethereum, as its underlying blockchain, will directly benefit from the adoption of stablecoins. By holding ETH, companies can participate in staking, DeFi, and other native protocol layer activities to earn additional income.

2. Copying the Strategy Bitcoin Strategy Model: BitMine plans to draw on MicroStrategy's Bitcoin strategy, monitoring the "per share ETH value" metric (similar to MicroStrategy's per share Bitcoin metric "BTC Yield"), and intends to achieve continuous growth of its ETH holdings through cash flow reinvestment and capital market activities.

3. The Undervaluation of Ethereum and Wall Street Capital Layout: Ethereum has become a key allocation target for a small number of institutional investors by 2025, with its staking annual yield and compliance gradually gaining recognition from traditional finance. SharpLink Gaming disclosed on July 1 that it has accumulated a position of 198,167 ETH and has fully deployed its ETH reserves into the staking protocol.

The Tear Between Market Capitalization and Fundamentals: Capital Frenzy Behind a 30-Fold Rise in One Week

In terms of financial performance, BitMine's revenue, although not high, has been steadily increasing year by year, with annual revenue in 2024 reaching 3.31 million USD, an increase of 674% compared to 2022. As of February 28, 2025, BitMine's balance sheet has over 16.63 million USD in cash and cash equivalents, total assets of approximately 23.65 million USD, and shareholders' equity of 19 million USD after deducting liabilities.

Source: BitMine

In the past week, BitMine's stock price has risen from $4.26 to $135, an increase of over 30 times, with a market capitalization reaching $800 million. However, in comparison to the annual revenue of $3.31 million, the market cannot help but question: has the company's valuation become detached from reality? At this time, is the launch of the Ethereum strategy intended to further boost valuation by leveraging market trends?

The Nasdaq-listed company SharpLink began to heavily bet on Ethereum in May, with its stock price soaring from $3 in May to nearly $80, before falling to around $12 due to concerns over sell-offs and a crisis of trust. This case reveals the high risks associated with betting on crypto assets. The volatility of the cryptocurrency market, changes in the regulatory environment, the development of the Ethereum ecosystem, issues related to the transparency of company strategy execution, and the bubble risks of market premiums deviating from fundamentals can all impact the company.

BitMine's strategic layout is a microcosm of the "Bitcoin - Ethereum" binary pattern in the crypto industry: while Bitcoin is seen as "digital gold", Ethereum is positioning itself as the "infrastructure carrier for stablecoins and DeFi", seizing the high ground of the application ecosystem. BitMine attempts to bet on both, but how to balance the Bitcoin main business with Ethereum's new strategy remains unclear. For investors, in the midst of market capitalization frenzy and fundamental tearing, it is even more important to maintain rational scrutiny.

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