BitMine Doubles Down on Ethereum Staking With Additional $260 Million Staked
Tom Lee’s BitMine has locked up almost $1.6 billion of its Ethereum treasury in staking contracts in only one week, positioning the agency as a serious community validator.
The transfer additional shifts BitMine from a passive ETH holder because it prepares for a serious enlargement of its approved share rely.
BitMine Locks Up Nearly 550,000 ETH in a Week
The company holder deposited an extra 82,560 ETH into staking protocols on January 2, in accordance with blockchain knowledge tracked by Lookonchain.
This newest tranche brings its whole staked inventory to approximately 544,064 ETH—roughly 13% of its 4.07 million ETH stockpile.
By committing these property to the consensus layer, BitMine goals to generate yield on its holdings. The transfer successfully turns its stability sheet right into a productive instrument fairly than a static retailer of worth.
However, the maneuver coincides with a sweeping proposal to restructure the corporate’s capital base to fund what administration describes as an Ethereum “supercycle.”
In a January 2 submit on X, BitMine Chairman Tom Lee requested approval to extend the company’s authorized shares from 500 million to 50 billion.
While Lee framed the hundredfold enhance as a mechanism to facilitate future inventory splits and hold the share value close to $25, the sheer scale of the authorization suggests broader ambitions.
He notes {that a} 50 billion share ceiling supplies BitMine with an unlimited runway to conduct At-The-Market (ATM) fairness choices.
This construction would permit BitMine to sell new stock to fund extra Ethereum purchases aggressively.
He argued that BitMine may make the most of the NAV premium, or the hole between the share value and the worth of its underlying property.
However, it may additionally dilute current shareholders.
Nonetheless, Lee outlined situations by which ETH may attain $250,000, pushed by Wall Street’s tokenization trends.
“We imagine Ethereum is the way forward for finance. A supercycle drive by Wall Street re-engineering on the blockchain. Major Wall Street leaders agree. BlackRock’s Larry Fink mentioned tokenization is the following evolution of worldwide markets. And the overwhelming majority of tokenization is occurring on Ethereum,” Lee said.
At these valuations, BitMine argues its implied share value may attain $5,000, necessitating splits of as much as 100-for-1 to keep up retail accessibility.
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