BitMine Becomes Ethereum Reserve with 163k ETH and $500M Holdings
BitMine, a Nasdaq-listed Bitcoin miner led by Tom Lee, has shifted into an Ethereum reserve company by acquiring 163,142 ETH at around $3,072 each, building a $500 million Ethereum reserve. Backed by a $250 million equity raise at $4.50 per share from investors including Founders Fund, Pantera, FalconX, Kraken, Galaxy Digital, DCG and GSR, BitMine now ranks as the second-largest ETH holder after SharpLink. The strategic move drove BMNR stock up sixfold intraday, before profit-taking and market headwinds trimmed gains to close at $41 with a $2.5 billion market cap. The decision highlights a broader trend of miners diversifying capital into Ethereum reserve for staking yield and DeFi exposure after the Merge. BitMine plans to grow per-share Ethereum reserve via cash flow reinvestment, capital-market activities and staking yields. Traders should watch BMNR stock’s high volatility, shifts in ETH holdings and potential impacts on miner equity valuations amid Bitcoin and Ethereum price swings.
Bullish
This Ethereum reserve build is bullish for ETH. In the short term, the purchase of 163k ETH at ~$3,072 signals strong demand and may tighten supply, potentially driving price spikes. Long term, miners diversifying into an Ethereum reserve and staking yield reduces circulating ETH and strengthens network security after the Merge. The equity raise and high-profile backing also boost market confidence. Traders are likely to view increased ETH accumulation by a major miner as a positive indicator for future price appreciation.