BitMine Immersion Technologies experienced unprecedented market volatility Thursday, with trading halted twice as shares continued their meteoric rise for the third consecutive day following the company’s announcement of an Ethereum treasury strategy. The stock closed at $135, representing a 130% daily gain and an astounding 2,150% surge from Monday’s $6 opening price when the company announced that Fundstrat co-founder and CIO Tom Lee would serve as board chair. Despite the explosive growth, shares retreated to $118 in after-hours trading, highlighting the extreme volatility surrounding crypto treasury firms in the current market environment.
The dramatic price movement stems from BitMine’s strategic pivot toward accumulating Ethereum in anticipation of increased institutional demand driven by potential stablecoin regulations. Lee, a prominent CNBC analyst, explained that the company aims to position itself ahead of expected demand from major financial institutions like JP Morgan and Goldman Sachs, who may begin staking Ethereum to secure the network and support billions of dollars in newly-issued dollar-pegged tokens. The firm successfully raised $250 million through a private placement involving high-profile investors including Peter Thiel’s Founders Fund, Pantera Capital, FalconX, and Digital Currency Group, with participants purchasing 55 million shares at $4.50 each.
While private placement investors have realized massive paper gains, they remain unable to trade their shares due to regulatory restrictions requiring effective registration statements or applicable exemptions. This situation mirrors recent challenges faced by other crypto treasury firms, as SharpLink Gaming’s shares plummeted 70% after the SEC deemed its registration filing effective, while Solana treasury firm Upexi experienced similar declines. BitMine’s current float of only 1.4 million shares has contributed to the extreme price volatility, as limited tradeable shares amplify market movements amid heightened investor interest.
The emergence of crypto treasury firms represents a growing trend in the digital asset space, with BitMine joining a roster of companies led by familiar media personalities seeking to capitalize on cryptocurrency adoption. The company’s strategy focuses on maximizing shareholder value through per-share digital asset accumulation, leveraging access to staking and decentralized finance opportunities. Similar ventures include Strike founder Jack Mallers’ Twenty One Capital, which focuses on itcoin">Bitcoin accumulation with Tether backing, and Anthony Pompliano’s ProCap Financial, another itcoin">Bitcoin treasury firm, demonstrating the diverse approaches being taken to capture institutional cryptocurrency demand.
