Tom Lee, the chairman of BitMine Immersion Technologies (BMNR), has initiated a proposal for shareholders to approve a significant increase in the company”s authorized share count from 500 million to 50 billion. This strategic move is intended to facilitate potential stock splits as BitMine”s valuation aligns with the performance of Ethereum.
Following the announcement, BitMine shares surged approximately 14%, trading around $30.93 in mid-afternoon New York sessions. Investor response suggests strong support for the initiative, which aims to keep the stock accessible for retail investors, especially in light of potential price increases for Ethereum.
In a recent video presentation, Lee characterized the proposal not as an immediate issuance of shares but rather as a structural adjustment to the company”s share structure. “That doesn”t mean we”re issuing 50 billion shares,” he clarified, emphasizing the need for flexibility in the face of evolving market conditions.
Lee”s rationale hinges on the correlation between BitMine”s share prices and the value of Ethereum. He highlighted that should Ethereum reach $22,000, BitMine shares could approach $500. Under more optimistic scenarios, where Bitcoin escalates to $1 million and Ethereum hits $250,000, the share price could potentially rise to about $5,000. Lee noted, “Most people want shares to stay around $25,” indicating that excessively high share prices could deter retail investment.
BitMine has strategically positioned itself as a major player in the Ethereum ecosystem, holding approximately 3.41% of Ethereum”s circulating supply. The firm recently revealed that it added an additional 44,463 ETH to its holdings, bringing its total to over 4.11 million ether, a significant figure in today”s cryptocurrency market.
Despite the apparent enthusiasm from some investors, the proposal has sparked a divided reaction on social media. Critics express concerns over potential dilution should the authorized shares increase significantly. However, supporters argue that authorized shares differ from issued shares, and the adjustment would provide necessary flexibility as the company adapts to market dynamics.
Shareholders have until January 14 to cast their votes on this proposal. BitMine is also set to activate its “Made in America” Validator Network in early 2026, aiming to generate staking yield from its impressive ETH reserves.
With a current valuation of approximately $12 billion based on its Ethereum holdings, BitMine stands as one of the largest publicly disclosed Ethereum treasuries, positioning itself among the most formidable balance sheets in the cryptocurrency sector.
