BitMine closes $250 million private placement to adopt ethereum as reserve

LAS VEGAS - BitMine Immersion Technologies, Inc. (NYSE AMERICAN:BMNR), whose stock has surged over 90% in the past week according to InvestingPro data, announced Wednesday the closing of a $250 million private placement that will fund the company’s adoption of Ethereum (ETH) as its primary treasury reserve asset.

The transaction was led by MOZAYYX with participation from multiple investors including Founders Fund, Pantera, FalconX, Republic Digital, Kraken, Galaxy Digital, and others. The funding was provided through a combination of cash and cryptocurrency.

According to the company’s press release, BitMine plans to use the proceeds to purchase ETH while continuing its core business operations in Bitcoin mining. The company, which has demonstrated strong revenue growth of nearly 90% over the last twelve months based on InvestingPro analysis, cited Ethereum’s smart contract capabilities and its role in supporting stablecoin payments, tokenized assets, and decentralized financial applications as key factors in this strategic decision.

"One key performance metric for BitMine going forward will be increasing ETH held per share and also driving reflexive benefits by accumulating a larger share of the supply of ETH," said Thomas "Tom" Lee, newly appointed Chairman of BitMine’s Board of Directors.

BitMine CEO Jonathan Bates stated that the company aims to build "a world-class ETH treasury" intended to enhance shareholder returns.

The private placement was conducted under Section 4(a)(2) of the Securities Act and/or Regulation D, with ThinkEquity, LLC acting as placement agent. The company has agreed to file a registration statement with the SEC for the resale of shares issued in connection with the offering.

BitMine’s operations are currently located in Trinidad and two locations in Texas. The company focuses on Bitcoin mining and related services, with this new initiative marking its expansion into Ethereum-based treasury management. InvestingPro analysis indicates the company currently trades at elevated multiples, with a price-to-book ratio of 179.8x, suggesting investors should carefully monitor valuation metrics. InvestingPro subscribers have access to 14 additional key insights about BMNR’s financial health and market position.

In other recent news, BitMine Immersion Technologies has made significant financial moves with the completion of a $2.7 million over-allotment option. This transaction involved the sale of 337,500 additional shares at $7.40 per share, following a previous public offering. Furthermore, BitMine announced a substantial $250 million private placement aimed at implementing an Ethereum treasury strategy. This strategy involves selling 55,555,556 shares at $4.50 each and is expected to make BitMine one of the largest publicly traded holders of Ethereum. The private placement, led by MOZAYYX and involving several high-profile investors, is set to close around July 3, 2025. Additionally, BitMine has completed a $16.3 million Bitcoin treasury investment, acquiring 154.167 Bitcoin at an average price of $106,033. The company aims to bolster its cryptocurrency holdings through these strategic initiatives. As part of these developments, Thomas Lee has been appointed as Chairman of the Board of Directors, reflecting BitMine’s focus on integrating traditional finance with cryptocurrency ventures.

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