BitMine Immersion Technologies Inc (AMEX:BMNR) shares are rallying Monday after the company appointed Fundstrat’s Tom Lee as chairman and adopted an Ethereum (CRYPTO: ETH) strategy.
What Happened: BitMine announced the signing and pricing of a private placement for the purchase and sale of approximately 55.56 million shares of common stock for $4.50 per share.
The company anticipates gross proceeds of approximately $250 million and plans to use the additional capital to implement an Ethereum treasury strategy by acquiring ETH, the native cryptocurrency of the Ethereum blockchain.
The offering is expected to close on or about July 3. Fundstrat’s Lee has been appointed chairman of the company’s board, effective Monday.
“Stablecoins have proven to be the ‘chatGPT’ of crypto, leading to rapid adoption by consumers, merchants and financial services providers,” Lee said.
“Ethereum is the blockchain where the majority of stablecoin payments are transacted … and thus, ETH should benefit from this growth.”
The company aims to increase the value of ETH held per share through a combination of reinvesting cash flows and capital market activities.
Before the deal was announced, BitMine had a market cap of just $25.86 million and shares had fallen around 45% since the start of the year. BitMine also has a low float, according to Benzinga Pro. Low-float micro-cap stocks tend to be very volatile.
BMNR Price Action: BitMine shares were up 252.4% at $15.19 at the time of publication Monday, according to Benzinga Pro.
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