BitMine's Thomas Lee Warning: ETH Accumulation Depends on Shareholder Approval

Ethereum-focused largest crypto treasury company BitMine Immersion Technologies (BMNR) has continued to rapidly purchase ether in recent weeks but has indicated that the continuation of this move is uncertain. According to the company’s President Thomas Lee, if shareholder approval is not obtained for the new share issuance, ether accumulation could slow significantly in the coming weeks.

With the purchase of 24,266 ether last week, BitMine’s total ether holdings have reached 4,167,768 tokens. This volume represents approximately 3.45% of the circulating ethereum supply. The company’s long-term goal is to control 5% of all ether tokens.

24,266 Ether Purchase as an Attempt to Increase Series

BitMine made these intensive purchases when ETH prices were around $2,430. The company’s total crypto holdings, including cash and strategic investments, have risen to $14 billion this week. While other digital asset treasuries are limiting purchase activities due to volatile market conditions, BitMine has adopted a strategic approach by financing ether accumulation through share sales.

The company’s strategic diversification is not limited to ethereum. BitMine’s portfolio includes 193 bitcoins. Additionally, it holds a $23 million stake in Eightco Holdings. Cash reserves have also been strengthened and increased to $988 million.

Shareholder Vote: Challenges in Surpassing the 50.1% Threshold

In a statement by Thomas Lee, it was emphasized that BitMine’s current 500 million authorized shares will soon be exhausted. Lee said, “Since BitMine will soon deplete this authorization, we need to follow up with a share increase now.”

For this increase to occur, at least 50.1% of the total issued shares must support the shareholder vote to be held on Thursday. Thomas Lee stated that this criterion is “extremely high” and makes obtaining authorization increase “quite difficult.” Achieving near-unanimous consensus is critical for the company’s strategic goals.

If shareholder approval is not obtained, a significant slowdown in ether accumulation is inevitable. Thomas Lee indicated that in this scenario, “purchases may need to be reduced in the coming weeks.” This situation suggests that BitMine’s aggressive growth strategy could be temporarily hindered.

Staking Strategy and Revenue Sources

BitMine emphasizes the use of held ethereum tokens to generate income. The company actively earns revenue by staking over 1.2 million ETH. By participating directly in the ethereum network through staking, it also increases the profitability of its portfolio.

This strategic approach positions BitMine not only as an entity increasing ether holdings but also as a management model that maximizes the efficiency of its held assets. As understood from Thomas Lee’s statements, the company’s long-term vision is to further strengthen its position in ethereum, provided shareholder approval is obtained.