BitMine Bets Big on Ethereum: $500 Million Treasury Triggers 45% Intraday Surge Before Sharp Reversal

BitMine Immersion Technologies (NYSE: BMNR) has cemented its strategic shift toward Ethereum, acquiring 163,142 ETH valued at over $500 million just days after completing a $250 million private placement. The move, disclosed on July 14, 2025, sent the company’s stock soaring 45% intraday before closing flat — a sharp reversal that signals investors remain cautious toward its aggressive pivot to crypto.

"We are pleased that we added significantly to our ETH treasury just 3 days after closing our private placement," said Jonathan Bates, CEO of BitMine. "Clearly Wall Street is getting 'ETH-pilled.'"

Strategic Ethereum Accumulation

On July 9, BitMine completed a $250 million private placement by issuing 55,555,556 shares at $4.50 each. The proceeds were allocated to the company's Ethereum treasury, enabling it to acquire 163,142 ETH at an average price of $3,072.67 per ETH — totaling approximately $501 million.

BitMine plans to grow its ETH-per-share ratio through staking yields, capital market operations, and reinvestment of free cash flow.

Stock Surge and Market Volatility

Following the July 14 announcement, BitMine’s stock jumped from around $40 at market open to an intraday high of $55 — a 45% gain. However, the rally quickly faded, and the stock closed the day back near $40. The full reversal of gains suggests that while the market initially reacted positively, investors remain wary of potential dilution and execution risks tied to BitMine’s crypto-focused strategy.

This pattern follows a prior episode in early July, when BitMine’s stock surged more than 3,000% before dropping 65% after announcing a large equity offering. The volatility underscores the market's uncertainty regarding the company’s shift to digital assets.

Despite fluctuations, BitMine's management reiterated its long-term commitment to Ethereum. The company emphasized that its treasury model is designed to mirror strategies seen in earlier digital asset accumulations, with a focus on capitalizing on Ethereum’s role in decentralized finance and stablecoin infrastructure.

BitMine believes that Ethereum will anchor a $2 trillion stablecoin market by 2028, and its holdings position the company to benefit from this projected growth.

Ethereum’s Market Momentum

Ethereum’s fundamentals continue to strengthen. This week, ETH prices rebounded to around $3,000, and staking participation reached a record high of over 29%, reflecting renewed market confidence.

Institutional players like BitMine and other large holders are reinforcing the bullish sentiment by securing substantial ETH reserves. Their long-term positioning signals trust in Ethereum’s potential as the backbone of the decentralized financial system.