BitMine copies Strategy's master move: buys Ethereum with stock issue

BitMine has decided to follow in Strategy's footsteps by adopting a bold financial tactic: financing the purchase of Ethereum through the issuance of shares. Discover how this strategy could change the rules of the crypto market.

Strategy revolutionized the market by turning its financial structure into a Bitcoin accumulation machine, using debt and equity issuance as leverage. Now BitMine has taken that formula, adapting it to the Ethereum universe, in which it is betting on a narrative of sustained growth and institutional exposure to the second most relevant cryptoasset on the market.

That is, instead of resorting to traditional capital or bank loans, BitMine is issuing shares to fund its ongoing acquisition of ETH. This approach allows it to strengthen its treasury without compromising operational liquidity, while building a strategic position in the blockchain ecosystem.

BitMine uses stock to strengthen its position in Ethereum

The model BitMine is implementing is based on a simple but powerful dynamic: issuing shares when the market values ​​them above the real value of the assets backing the company.

The key is in what is known as “premium over average net asset value” (mNAV)Simply put, if investors are willing to pay more for a BitMine share than the value of the Ethereum the company owns per share, then there's a premium. And that difference becomes a strategic opportunity.

When this premium is high, BitMine can issue new shares at competitive prices, raise fresh capital, and use it directly to purchase more ETH. Thus, without selling products or services, the company strengthens its position in the crypto ecosystem and expands its treasury.

This mechanism, as it explains Colin Wu, generates a virtuous cycle: market confidence drives share valuation, that valuation allows for new issuances, and the issuances finance the accumulation of Ethereum. Thus, BitMine doesn't rely on conventional revenue, but rather on the perception of value generated by its financial strategy. In other words, Turn trust into capital, and capital into crypto assets.

Ethereum's narrative as an institutional asset is strengthening

BitMine's confidence in Ethereum isn't simply speculative; the company recognizes the structural potential of this cryptocurrency, which is now based on the Proof of Stake consensus protocol following its transition to Ethereum 2.0, which implements ETH burning mechanisms, and has established itself as a leading platform in the decentralized finance and tokenization sectors. In addition to all this, Ethereum now plays a growing role in corporate treasuries, adding a series of factors that make it a dynamic and attractive store of value. 

By systematically accumulating ETH, BitMine is positioning itself as a relevant institutional player, capable of attracting investors seeking indirect exposure to Ethereum without assuming the direct volatility of the crypto market.

On the other hand, the issuance of shares boosts liquidity and expands available resources, allowing BitMine to adapt quickly and take advantage of opportunities that arise at different moments in the Ethereum price cycle. This dynamic contributes to the efficient and strategic management of its assets, boosting its long-term development.

At the time of writing this article, BitMine accumulates 1,7 million ETH, valued at over $7.920 billion. Thus, the company occupies the First as the largest institutional holder of Ethereum. 

Active management and long-term vision

BitMine, which began its journey focusing almost exclusively on Bitcoin mining, has undergone a significant strategic evolution. Aware of the dynamic changes in the cryptocurrency world and the importance of diversifying its portfolio, the company decided to open up to new opportunities. This change led it to expand its focus to Ethereum in June of this year, recognizing this cryptocurrency not only as a valuable asset, but also as a platform with enormous long-term growth potential.

Although the company holds some bitcoins, around 190 BTCFor BitMine, the transition to ETH accumulation represents a form of active management with a clear and sustainable vision. Beyond simple crypto mining, they are committed to building value with a forward-looking perspective. Ethereum, with its robust ecosystem and continuous innovations, offers a solid foundation for this new approach. Therefore, this company's decision not only diversifies its business model but also reflects a deep understanding of the technological and economic trends that could define the crypto market in the coming years.

Consequently, BitMine positions itself as a company that not only adapts, but also embraces change and evolves intelligently, with an eye toward stable and profitable growth that benefits all its stakeholders.