TLDR
- BitMine Immersion (BMNR) raised $365.24 million by selling 5.22 million shares at $70 per share, a 14% premium to recent closing price
- The offering includes warrants for 10.44 million additional shares at $87.50, potentially bringing total proceeds to $1.28 billion if exercised
- Funds will be used primarily to increase the company’s ethereum holdings as part of its goal to acquire 5% of ETH
- The deal is backed by institutional investors including ARK’s Cathie Wood, Founders Fund, and Bill Miller III
- The offering represents approximately 5% dilution to existing shareholders but at premium pricing
BitMine Immersion has completed a registered direct offering that raised $365.24 million. The crypto-focused investment company sold 5.22 million shares at $70 per share.
The share price represents a 14% premium to BitMine’s September 19 closing price of $61.29. This premium pricing is unusual for secondary offerings, which typically trade at discounts to market price.
The transaction also includes warrants to purchase up to 10.44 million additional shares. These warrants carry an exercise price of $87.50 per share and expire in March 2027.
If all warrants are exercised, BitMine could raise an additional $913 million. Combined with the initial offering, total potential proceeds reach $1.28 billion.
BitMine plans to use the funds primarily to expand its ethereum holdings. The company has stated its goal of acquiring 5% of all ETH tokens in circulation.
Institutional Support Drives Premium Valuation
The offering attracted backing from several prominent institutional investors. ARK’s Cathie Wood participated in the deal along with MOZAYYX and Founders Fund.
Other notable investors include Bill Miller III, Pantera, Kraken, DCG, and Galaxy Digital. Personal investor Thomas Lee also supported the transaction.
Chairman Thomas Lee highlighted the premium pricing as validation of institutional interest. He described the deal as “materially accretive to existing shareholders.”
Lee emphasized BitMine’s position as the only large-cap US stock offering direct ethereum exposure. He referenced growing Wall Street interest in ethereum blockchain development.
The warrant structure provides additional upside potential for investors. The $87.50 exercise price represents a 25% premium to the offering price.
Market Position and Strategic Focus
BitMine positions itself as a Bitcoin and Ethereum network company focused on long-term crypto accumulation. The company’s strategy centers on building substantial cryptocurrency reserves.
The ethereum acquisition goal of 5% represents a massive undertaking. Such a position would require billions of dollars in additional purchases.
The offering dilutes existing shareholders by approximately 5% based on the new share issuance. However, the premium pricing helps offset this dilution impact.
BitMine’s August Chairman’s message referenced a “compelling supercycle for ethereum.” The company believes institutional adoption will drive future price appreciation.
The warrant expiration date of March 2027 provides a nearly two-year window for exercise. This timeline aligns with potential ethereum price cycles.
The transaction is expected to close on September 23, 2025, subject to standard closing conditions. The company will then proceed with its ethereum accumulation strategy using the new capital.
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