Bitmine Immersion Stock Is Soaring Today – What’s Behind The Rally?

• The board had earlier declared an increase in the number of shares the company is authorized to issue from 500 million to 50 billion.
• Lee argued that the authorization of additional common stock will allow the company to explore strategic transactions.
• Since adopting its Ethereum Treasury plan on June 30, BMNR stock has increased by over 86%.

Shares of Bitmine Immersion (BMNR) were in the spotlight on Friday after its Chairman, Tom Lee, urged shareholders to approve an increase in its authorized shares, sending the stock up more than 9%.  

In a presentation, Lee urged shareholders to approve a charter amendment to increase the number of authorized shares from 500 million to 50 billion. On December 8, Bitmine’s board had approved increasing the number of authorized shares, subject to shareholders' approval at the annual meeting on January 15.

Lee argued that the authorization of additional shares of common stock will allow the company to explore opportunities for strategic transactions that could result in the issuance of common stock, including equity capital raises, as they arise or as the company’s needs require.

In addition, the company has an at-the-market (ATM) offering program in place, pursuant to which it may offer and sell shares of common stock, he added.

Lee clarified that the company is not issuing 50 billion shares; instead, this is the maximum number of shares it wants Bitmine to be at.

Stock Rally

Bitmine Immersion Technologies' (BMNR) stock has risen by over 86% since adopting its Ethereum Treasury plan on June 30.

The company announced on Monday that its total Ethereum (ETH) holdings had reached 4.11 million tokens, after adding over 44,000 ETH over the past week. And it now owns 3.41% of the ETH token supply. Bitmine is the largest ETH treasury.

Digital Asset Treasuries (DATs) are gaining prominence and attracting more investor attention as companies race to add cryptocurrencies to their balance sheets. One of the biggest DAT companies is Michael Saylor-backed Strategy (MSTR), which began buying bitcoin in 2020.

How Did Stocktwits Users React?

Retail sentiment around the BMNR trended in ‘bearish’ territory amid ‘high’ message volumes.

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