BitMine Immersion Technologies Announces $250 Million Private Placement to Initiate Ethereum Treasury Strategy; Expected to Become One of the Largest Publicly Traded ETH Holders

Rhea-AI Summary

BitMine Immersion Technologies (NYSE AMERICAN: BMNR) has announced a significant $250 million private placement through the sale of 55,555,556 shares at $4.50 per share. The transaction, expected to close around July 3, 2025, was led by MOZAYYX with participation from notable investors including Founders Fund, Pantera, and others.

In a strategic move, the company plans to use the proceeds to acquire Ethereum (ETH) as its primary treasury reserve asset, increasing its existing treasury holdings by over 16x. The initiative will be supported by partnerships with FalconX, Kraken, and Galaxy Digital, alongside existing custody partners BitGo and Fidelity Digital.

Notably, Thomas Lee, Founder of Fundstrat and CIO of Fundstrat Capital, has been appointed as Chairman of the Board of Directors effective immediately. The private placement was conducted under Section 4(a)(2) of the Securities Act and/or Regulation D, with ThinkEquity, LLC acting as the placement agent.

Positive

• Secured $250 million in private placement funding from high-profile investors
• Strategic expansion of treasury holdings by over 16x through ETH acquisition
• Appointment of prominent financial figure Thomas Lee as Chairman
• Partnerships with major crypto firms FalconX, Kraken, and Galaxy Digital
• Access to protocol-level activities like staking and DeFi mechanisms through ETH holdings

Negative

• Significant dilution through issuance of 55,555,556 new shares
• High exposure to cryptocurrency market volatility through ETH treasury strategy
• Subject to regulatory risks and Securities Act restrictions on share resale

Insights

Cryptocurrency Investment Strategist

BitMine's $250M raise to build an ETH treasury represents a significant institutional move into Ethereum with potential valuation implications.

BitMine Immersion's $250 million private placement marks a pivotal strategic shift for the company, transforming from a traditional mining operation into a significant Ethereum stakeholder. This move goes beyond simply holding cryptocurrency—it positions BitMine to leverage Ethereum's entire ecosystem through staking and DeFi mechanisms, potentially generating additional yield on their treasury assets.

The caliber of investors participating in this placement is particularly noteworthy. The involvement of established cryptocurrency ventures like Pantera, Kraken, and Galaxy Digital alongside traditional finance players suggests strong institutional confidence in both BitMine's strategy and Ethereum's long-term prospects. This diverse investor consortium bridges the traditional finance and cryptocurrency worlds in a way few other public companies have managed.

The appointment of Thomas Lee as Chairman adds significant credibility. As Fundstrat's founder, Lee brings market analysis expertise that will be crucial for managing BitMine's treasury operations in the volatile cryptocurrency space. His mention of stablecoins as the "chatGPT of crypto" highlights a strategic vision focused on Ethereum's utility as the dominant settlement layer for the growing stablecoin market.

The introduction of "ETH held per share" as a key performance indicator creates a new valuation framework for BitMine. This metric effectively transforms the company into a leveraged play on Ethereum's price while maintaining operational cash flows from its core business. The 16x increase in treasury holdings represents a fundamental transformation of BitMine's balance sheet risk profile and potential return characteristics.

By focusing on Ethereum rather than Bitcoin, BitMine is making a calculated bet on the future of programmable blockchains over pure store-of-value assets. This differentiated approach in the public markets could potentially create a new category of cryptocurrency-exposed equities beyond the typical mining operations most investors are familiar with.

Thomas (Tom) Lee, the Founder of Fundstrat and CIO of Fundstrat Capital, will become Chairman of the Board of Directors effective today.

The transaction was led by MOZAYYX with participation from Founders Fund, Pantera, FalconX, Republic Digital, Kraken, Galaxy Digital, DCG, Diametric Capital, Occam Crest Management, and Thomas Lee.

Upon the closing of the Private Placement, BitMine will advance its treasury strategy on Ethereum.

BitMine Immersion continues to enhance its asset-light and mining business by increasing its existing treasury holdings by over 16x.

LAS VEGAS, June 30, 2025 /PRNewswire/ -- (NYSE AMERICAN: BMNR) ("BitMine" or the "Company") today announced the pricing and signing of a private placement for the purchase and sale of 55,555,556 shares of common stock (or common stock equivalents in lieu thereof) at a price of $4.50 per share for expected aggregate gross proceeds of approximately $250 million before deducting placement agent fees and other offering expenses (funded in a combination of cash and cryptocurrencies) to implement an Ethereum treasury strategy.

The transaction was led by MOZAYYX with participation from a high quality group of investors including Founders Fund, Pantera, FalconX, Republic Digital, Kraken, Galaxy Digital, DCG, Diametric Capital, Occam Crest Management, and Thomas Lee.

The closing of the offering is expected to occur on or about July 3, 2025, subject to the satisfaction of customary closing conditions, including without limitation, the authorization of the Supplemental Listing Application by the NYSE American. The Company intends to use the net proceeds of the offering to acquire the native cryptocurrency of Ethereum blockchain commonly referred to as "ETH" and contribute the ETH to the Company's treasury operations. ETH will serve as the Company's primary treasury reserve asset.

Thomas Lee, newly appointed Chairman of the Board of Directors, said, "This transaction includes the highest quality investors across trad-fi and crypto venture capital, properly reflecting the rapid and continued convergence of traditional financial services and crypto."

Proceeds from the private placement enable the Company to adopt Ethereum (ETH) as its primary treasury reserve asset, while continuing its focus on the core business operations. ETH is the native layer of the Ethereum blockchain. A differentiating feature of Ethereum is the enabling of smart contracts and the majority of stablecoin payments, tokenized assets, and decentralized financial applications are transacted on Ethereum. By having a direct ETH treasury position, the Company has access to native protocol-level activities, such as staking and decentralized finance mechanisms, on the Ethereum network.

Thomas Lee, Chairman of BitMine, states, "Stablecoins have proven to be the 'chatGPT' of crypto, leading to rapid adoption by consumers, merchants and financial services providers.  Treasury Secretary, Scott Bessent, recently stated the stablecoin market could reasonably  reach $2 trillion (Bloomberg) compared to the current $250 billion (per defillama.com). Ethereum is the blockchain where the majority of stablecoin payments are transacted (according to Block.co) and thus, ETH should benefit from this growth. One of the key performance metrics (KPI) for BitMine going forward is to increase the value of ETH held per share. This can be achieved by a combination of reinvestment of the Company's cash flows, capital markets activities, and by the change in value of ETH

Jonathan Bates, CEO of BitMine, said, "The private placement will accelerate BitMine's treasury holdings shortly after its first treasury purchase on June 9, 2025. FalconX, Kraken, and Galaxy Digital plan to partner with the Company to grow a world class Ethereum treasury strategy alongside existing custody partners, BitGo and Fidelity Digital."

ThinkEquity, LLC acted as the placement agent in connection with the private placement.

Cantor Fitzgerald & Co. acted as advisor to the lead investor, MOZAYYX.

Winston & Strawn LLP acted as counsel to the lead investor, MOZAYYX.

FitzGerald Kreditor Bolduc Risbrough LLP acted as counsel to the Company.

Greenberg Traurig, LLP acted as counsel to the placement agent.

The offer and sale of the foregoing securities were made in a private placement in reliance on an exemption from the registration requirement of the Securities Act of 1933, as amended (the "Securities Act"), pursuant to Section 4(a)(2) of the Securities Act and/or Regulation D promulgated thereunder, and applicable state securities laws. Accordingly, the securities offered in the private placement may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirement of the Securities Act and such applicable state securities laws. Concurrently with the execution of the securities purchase agreements, the Company and the investors entered into a registration rights agreement pursuant to which the Company has agreed to file a registration statement with the Securities and Exchange Commission (the "SEC") registering the resale of the shares of common stock to be issued or issuable in connection with the offering.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.

About BitMine

BitMine is a Bitcoin and Ethereum Network Company with a focus on the accumulation of Crypto for long term investment, whether acquired by our Bitcoin mining operations or from the proceeds of capital raising transactions. Company business lines include Bitcoin mining, synthetic Bitcoin mining through involvement in Bitcoin mining, hashrate as a financial product, offering advisory and mining services to companies interested in earning Bitcoin denominated revenues, and general Bitcoin advisory to public companies. BitMine's operations are located in low-cost energy regions in Trinidad; Pecos, Texas; and Silverton, Texas.

Forward Looking Statements

This press release contains statements that constitute "forward-looking statements." The statements in this press release that are not purely historical are forward-looking statements which involve risks and uncertainties. This document specifically contains forward-looking statements regarding the potential benefits of the uses of proceeds of the Company's recent offering and future business plans. In evaluating these forward-looking statements, you should consider various factors, including BitMine's ability to keep pace with new technology and changing market needs; BitMine's ability to finance its current business and proposed future business; the competitive environment of BitMine's business; and the future value of Bitcoin and Ethereum. Actual future performance outcomes and results may differ materially from those expressed in forward-looking statements. Forward-looking statements are subject to numerous conditions, many of which are beyond BitMine's control, including those set forth in the Risk Factors section of BitMine's Form 10-K filed with the Securities and Exchange Commission (the "SEC") on April 3, 2025, as well as all other SEC filings, as amended or updated from time to time. Copies of BitMine's filings with the SEC are available on the SEC's website at www.sec.gov. BitMine undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

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SOURCE BitMine Immersion Technologies, Inc.

FAQ

What is the size and price of BitMine's (BMNR) private placement announced in June 2025?

BitMine announced a $250 million private placement through the sale of 55,555,556 shares at $4.50 per share.

Who are the major investors in BitMine's (BMNR) private placement?

The placement was led by MOZAYYX with participation from notable investors including Founders Fund, Pantera, FalconX, Republic Digital, Kraken, Galaxy Digital, DCG, and others.

How will BitMine (BMNR) use the proceeds from the private placement?

BitMine will use the proceeds to acquire Ethereum (ETH) as its primary treasury reserve asset, increasing its existing treasury holdings by over 16x.

Who is the new Chairman of BitMine (BMNR)?

Thomas Lee, the Founder of Fundstrat and CIO of Fundstrat Capital, has been appointed as Chairman of the Board of Directors.

When is BitMine's (BMNR) private placement expected to close?

The private placement is expected to close on or about July 3, 2025, subject to customary closing conditions including NYSE American approval.