Proposal aims to prepare for future stock splits and capital flexibility as Ether-linked valuation rises
BitMine’s chairman has proposed a dramatic increase in the company’s authorized share count, arguing the move is necessary to support long-term growth and maintain accessibility for retail investors as the firm’s valuation tracks Ether prices.
Details of the Share Increase Proposal
Tom Lee urged shareholders to approve a plan to raise BitMine’s authorized shares to 50 billion from 50 million, representing a 1,000x increase. He emphasized that the proposal sets a maximum share limit and does not mean the company will immediately issue new shares.
Lee said BitMine’s share price closely follows Ether’s market performance. Using the ETH/Bitcoin ratio, he modeled a scenario in which Bitcoin reaches $1 million and Ether climbs to $250,000. Under that assumption, BitMine shares would reach an implied price near $5,000, making them inaccessible to most retail investors.
To address this, Lee argued the company would need a 100:1 stock split to keep shares near a preferred price of around $25. Such a split would require tens of billions of authorized shares, well beyond the current limit.
Beyond stock splits, Lee said having shares authorized in advance would allow BitMine to strategically raise capital if needed. Critics, however, voiced concerns about potential dilution, highlighting investor skepticism despite assurances that the proposal does not mandate immediate issuance.
BitMine transitioned in 2025 from Bitcoin mining to an Ether-focused treasury strategy, recently surpassing 4 million ETH in holdings while also staking assets to generate yield.
Disclaimer
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