From Bitcoin mining enterprises to the world's largest ETH holder: A comprehensive analysis of BitMine's Ethereum treasury strategy.

What strategy did BitMine, this Bitcoin mining company, use to become the world's largest ETH corporate holder in just two months? Article author: Lesley Source: MetaEra On June 30, 2025, BitMine Immersion Technologies (NYSE: BMNR) announced the launch of a $250 million private placement, officially shifting to an Ethereum ($ETH) treasury strategy. At the same time, Thomas Lee, founder and Chief Investment Officer of the well-known investment firm Fundstrat, was appointed as the chairman of the company's board and personally involved in the investment. Soon after, heavyweight figures from Wall Street, including former PayPal CEO Peter Thiel and ARK Investment Management CEO Cathie Wood, followed suit, providing strong capital endorsement for this strategic transformation.

More than forty days later, the market gave a clear response. This Bitcoin mining company has become the focus of the capital market. As of August 14, BitMine, with a cumulative holding of approximately 1.2 million ETH, valued at about 5.48 billion USD, has become the world's largest Ethereum holder. The stock price trend more intuitively reflects market sentiment: a 605.07% increase within 30 days and a 1214.38% increase over three months. From any angle, this is a textbook example of capital market operations. Behind the digits is the reallocation of capital. BitMine has shifted from the traditional "Bitcoin mining monetization" model to a "long-term holding of ETH" treasury strategy, essentially transitioning from industrial capital to financial capital. The success of this model not only proves the feasibility of digital assets as reserve assets for enterprises, but more importantly, it may be opening up a new path for traditional financial institutions to participate in the crypto economy. How did BitMine, this Bitcoin mining company, rise to become the largest ETH corporate holder in the world in just two months? In this article, we will conduct an in-depth analysis. BitMine Asset Strategy Execution Status and In-Depth Analysis From launching a $250 million private placement on June 30 to becoming the world's largest ETH corporate holder, BitMine has demonstrated the power of the Digital Asset Treasury (DAT) model with a textbook-level capital operation. BitMine's Ethereum treasury strategy timeline overview The accumulation trajectory of BitMine's ETH exhibits a textbook-level rhythm of capital allocation, with each step meticulously designed: June 30, 2025: BitMine announced the launch of a $250 million private placement plan to implement its Ethereum treasury strategy. Thomas Lee officially became the chairman of the company's board and will lead the company in advancing this new strategy. On July 9, 2025, BitMine announced the completion of its $250 million private placement plan, further promoting the implementation of its asset-light treasury strategy. July 14, 2025: The company announces it holds more than $500 million worth of ETH. July 17, 2025: The company announced it holds over 1 billion dollars worth of ETH. July 24, 2025: Holding over $2 billion worth of ETH, establishing a leadership position in the Ethereum treasury sector. August 4, 2025: Holding over 833,000 ETH tokens, worth over $2.9 billion, becoming the largest ETH treasury in the world. August 11, 2025: Holding over 1.15 million ETH tokens, worth over $4.96 billion, with an increase of $2 billion in just one week. August 12, 2025: Bitmine Immersion submitted documents to U.S. federal regulators to increase its fundraising target for purchasing ETH by another $20 billion, raising it to $24.5 billion, in order to solidify its position as the largest ETH treasury in the world.

This accumulation speed is rare in the capital market - the monthly per share ETH growth rate of BitMine's Ethereum treasury strategy in its first month has surpassed the cumulative growth of Strategy (formerly MicroStrategy) in the previous six months. BitMine Ethereum Treasury Strategy In-Depth Analysis Why choose the digital asset treasury strategy? DAT (Digital Asset Treasury) refers to an emerging model where enterprises incorporate cryptocurrencies such as Bitcoin and Ethereum as strategic reserve assets into their balance sheets. For a long time, Bitcoin treasury strategies represented by Strategy have become a mature path for companies to participate in the crypto economy, and in June 2025, Bitmine launched the Ethereum digital treasury strategy, completely igniting this round of ETH market. The core of the DAT model lies in redefining the way enterprises create value. According to an analysis by Pantera Capital, the most important factor for the success of DAT is the long-term investment value of its underlying tokens. Traditional enterprises create value based on cash flow generated from their operations, while DAT companies create value through the appreciation of digital assets. The advantages of this model are: • Capital allocation efficiency: Compared to traditional heavy asset operations, the DAT model can allocate capital more efficiently. BitMine's shift from Bitcoin mining to Ethereum treasury essentially represents a transition from a heavy asset model reliant on electricity, hardware, and operations to a flexible capital allocation model. • Valuation Reconstruction and Asset Management: The valuation of DAT Company no longer relies on traditional price-to-earnings ratios (P/E Ratio), but is more based on its net asset value (NAV). When investors purchase DAT Company shares, they are essentially buying a professionally managed digital asset portfolio. • Stock Price Premium Utilization: The stock price of DAT can be decomposed into the product of three major elements: ( number of tokens per share; ) underlying token price; ( NAV premium multiple (mNAV, Multiple of Net Asset Value). When the stock presents a premium relative to NAV (i.e., mNAV > 1x), the company can raise funds exceeding the net asset value by issuing shares, which can be used to increase the number of tokens held per share and achieve value enhancement. The core of this strategy lies in utilizing the valuation premium granted by the market to increase the number of tokens held per share, thereby amplifying shareholder returns when the underlying token price rises.

According to Pantera's analysis, taking BMNR as an example, there is a clear value-driven logic behind its remarkable stock price increase. Within a month after launching the treasury strategy at the end of June, BMNR's per-share ETH holding surged by 334%, contributing approximately 60% to the stock price increase; the price of ETH rose from $2,500 to $4,300, contributing around 20%; and mNAV expanded from 1.1 times to 1.7 times, also contributing about 20%. This revenue decomposition structure highlights the core competitive advantage of the DAT model: the dominant factor in stock price growth is not the passive price fluctuations of digital assets, but rather the per-token appreciation achieved through active capital allocation by the management. In other words, investors gain not only the market returns from the increase in ETH prices (i.e., the returns generated from fluctuations with the market), but more importantly, the active returns created by the management (i.e., the portion of returns that do not fluctuate with the market). This "management-controlled value creation mechanism" is the core differentiated value proposition of DAT Company compared to directly holding spot, and it also explains why institutional investors are willing to pay a premium for DAT stock. Why choose Ethereum?

BitMine's firm choice to focus on Ethereum reflects a deep judgment on the future development direction of blockchain infrastructure. Tom Lee stated on the Bankless podcast that Ethereum will become the infrastructure for the financialization and AI era, while the current market price is far below its true potential. With the on-chain transition of Wall Street, Ethereum will become one of the most important macro trends in the next decade. • Network Effect Advantage: Ethereum has become the core infrastructure of digital finance. Ethereum hosts the vast majority of DeFi applications, NFT transactions, and enterprise-level blockchain applications. As traditional financial institutions accelerate their "on-chain" efforts, the network value of Ethereum will continue to grow. • Diversification of earnings: Compared to Bitcoin, Ethereum offers a more diverse range of income sources. Companies can earn stable returns through staking via Ethereum's Proof of Stake (PoS) mechanism. As Tom Lee stated: "This essentially makes these companies like infrastructure operators, with a stable revenue stream." Additionally, staking derivatives and on-chain yield strategies within the DeFi ecosystem provide more financial innovation tools and earning opportunities than Bitcoin. • Institutional Adoption Trend: Tom Lee mentioned on a podcast: "For many American institutions, the ETH ETF may not meet the fund investment parameters, while digital asset treasury companies offer a compliant and efficient alternative." This indicates that as institutional investors grow more interested in Ethereum, digital asset treasury companies are providing them with more investment options. The core business model of BitMine: maximizing the per share ETH holdings. BitMine's core business model is to maximize the amount of ETH per share (EPS, ETH Per Share) — because in a digital asset bull market, the density of holding coins determines the multiplier effect on shareholder returns, and this metric has replaced traditional earnings per share as a key performance indicator. BitMine has taken this logic to the extreme by continuously enhancing the amount of ETH per share through a diversified capital allocation strategy, thereby achieving super-linear growth in stock price when the price of ETH rises. The main ways to increase the token holding per share are as follows: • Premium issuance strategy: Based on the theoretical framework of the aforementioned DAT model, BitMine transforms the strategy of "utilizing stock price premium" into specific operational techniques. New shares are issued when the stock price exhibits a premium relative to the NAV of ETH. The logic behind BitMine's latest plan to raise 20 billion dollars to purchase ETH lies in this—assuming the NAV per share is 100 dollars but the stock price is 120 dollars, the company issues shares to obtain 120 dollars in cash to purchase an equivalent amount of ETH, which can increase the value of each ETH share from 100 dollars to approximately 110 dollars, achieving value enhancement. • Innovation of derivative tools: Issuing convertible bonds and other equity-related securities to gain additional capital through the dual volatility of monetized stocks and ETH. Pantera predicts that BitMine will soon expand into this area, raising funds to purchase more ETH through bond financing and other means without diluting existing shareholders' equity. • Staking Yield Reinvestment: The Ethereum PoS mechanism provides BitMine with an additional source of income that Bitcoin DAT does not have. The annualized yield obtained from staking ETH can be automatically reinvested to purchase more ETH, creating a compound growth effect. This is a unique advantage of ETH and other smart contract tokens compared to Bitcoin DAT. • Mergers and Acquisitions: As more companies turn to Ethereum treasury strategies, BitMine can achieve scale expansion by acquiring other DAT companies at a transaction price close to or below NAV. The synergy of these four growth mechanisms allows BitMine to amplify profits when ETH prices rise, and to maintain a competitive advantage through proactive capital allocation strategies when ETH prices fall. Essentially, BitMine's treasury strategy is a precisely designed financial engineering project, whose success depends on the management's accurate grasp of market timing, proficient use of capital market tools, and accurate judgment of the long-term value of the Ethereum ecosystem. The sustainability and replicability of this model will largely determine the future development trajectory of DAT as an emerging asset class. Summary: Future Outlook BitMine is driving profound changes in the field of cryptocurrency asset management with clear strategic planning and strong execution. As Tom Lee, the chairman of BitMine's board, has proposed the company's long-term goal—acquiring 5% of the total supply of ETH, this goal is referred to as "5% Alchemy." The Ethereum treasury strategy company is replicating the successful experiences of companies like Strategy in the Bitcoin field, attracting follow-ups from several companies including Bit Digital and SharpLink Gaming. Meanwhile, Pantera Capital's investment of $300 million into the DAT field demonstrates the positioning of institutional capital in this emerging area. Pioneers like BitMine are transforming theoretical concepts into replicable business realities through the successful practice of Ethereum treasury reserves. As more and more publicly listed companies recognize the unique value of digital assets, the strategic layout and execution experience of these pioneers will become an important catalyst for driving the digital transformation of enterprises, accelerating the deep integration of traditional finance and the blockchain economy.

Reference Information: Bitmine Immersion Technologies, inc. Official Disclosure (PR Newswire Release): Pantera's Research on Digital Asset Treasury Investment Strategies: LongHash VC Analysis on the New Asset Class of DAT: