What is BitMine Immersion Technologies (BMNR)?

BMNR is the world’s largest Ethereum treasury strategy company, holding ~1.71 million ETH (worth ~$7.5 billion). Under Tom Lee’s leadership, it’s aggressively buying ETH with a goal of owning 5% of all Ethereum; making it both a high-risk, high-reward crypto investment and a potential institutional gateway to ETH exposure. The stock now ranks as the 20th most liquid US stock, trading $2.8 billion daily on average.

Key Takeaways

• BitMine Immersion Technologies is a blockchain company originally known for its Bitcoin mining centers which utilize immersion cooling techniques to boost hashrate production. 

• Under Fundstrat’s Tom Lee, the company is now focusing on building the largest Ethereum treasury with the goal of owning 5% of ETH’s total supply. 

• The combination of its immersion-cooled Bitcoin mining operations and ETH treasury strategy positions BitMine as a unique option for investors seeking an Ethereum investment vehicle. 

What Is BitMine Immersion Technologies (BMNR)?

BitMine Immersion Technologies is a blockchain company best known for running Bitcoin mining data centers using advanced immersion cooling technology. Until recently, its core business was focused on mining and related services, such as providing infrastructure for third-party miners and advisory support for companies seeking Bitcoin-based revenues.

Today, however, BitMine is making headlines for a very different reason: its bold pivot into becoming an Ethereum treasury company. 

From Bitcoin Mining to Ethereum Treasury Pioneer

BitMine has moved its main focus from specializing in immersion-cooled Bitcoin mining to aggressively accumulating Ether (ETH) in its treasury. Under the leadership of veteran Wall Street strategist Tom Lee, the firm is now working to build one of the largest ETH treasuries in the world, with an ambitious long-term goal of controlling up to 5% of Ethereum’s total supply.

Since officially launching the treasury initiative on June 30, 2025, BitMine has raised capital and begun making large ETH purchases. In just a short period, the company has accumulated approximately 1.71 million ETH (worth roughly $7.5 billion at $4,388 per ETH), making it the world’s largest Ethereum treasury and the second-largest crypto treasury globally (behind only Strategy’s $69 billion Bitcoin holdings) at the time of writing.

The reason behind Lee’s conviction in Ethereum is the growing relationship between the cryptocurrency and financial industries driven by the growth of stablecoins. Stablecoins are cryptocurrencies designed to maintain a stable value, usually pegged to the US dollar, and they’re mainly built on Ethereum’s network. The stablecoin market is worth more than $284 billion, with major stablecoins such as USDC, USDT, USDe, and USDS being issued on Ethereum. 

Who Is Tom Lee? Wall Street Meets Crypto Strategy

Tom Lee, the architect of BitMine’s Ethereum strategy, is a veteran Wall Street strategist with more than 25 years of experience in equity research. He previously served as Chief Equity Strategist at J.P. Morgan and as Managing Director at Salomon Smith Barney, earning top rankings from Institutional Investor every year since 1998. Today, he is also the Head of Research and a Managing Partner at Fundstrat Global Advisors.

Beyond traditional finance, Lee is well known in the crypto space for his long-standing support of Bitcoin and for making bold price forecasts. His pivot to Ethereum reflects his belief that ETH is undervalued and increasingly central to the growth of stablecoins and real-world asset tokenization.

The Revolutionary 5% Ethereum Supply Strategy

BitMine’s long-term objective is to acquire and stake 5% of Ethereum’s total supply. While ambitious, Tom Lee argues the target is achievable through a mix of capital raises, mining revenue, and staking rewards. Staking means locking up ETH to help secure the Ethereum network and earning rewards (typically 3-4% annually) for doing so.

Holding such a large share of ETH would make BitMine not just a treasury company, but a strategically important player in the Ethereum ecosystem.

Understanding the “Sovereign Put” Theory

To explain this approach, Lee uses what he calls the “sovereign put” theory. If governments or major institutions need lots of ETH, they would rather buy from or partner with BitMine (which aims to own 5% of all ETH), rather than purchase directly from the market and drive up ETH prices for everyone.

This perception creates a kind of safety net since investors believe that in times of stress, sovereign players would support or acquire the treasury company, reducing downside risk. While the theory is inspired by the concept of put options, it is still Lee’s own theory based on his experience and understanding from years on Wall Street.

What 5% of ETH Supply Actually Means

Reaching 5% of Ethereum’s supply isn’t just a symbolic milestone — it would make BitMine a systemically important holder in the ecosystem. Such a position could attract institutions seeking ETH exposure, since partnering with or acquiring a company like BitMine might be easier than buying directly from the open market. Lee also sees this aligning with Wall Street’s growing interest in tokenizing real-world assets, from money markets to stocks, much of which is already being built on Ethereum.

Comparing to MicroStrategy’s Bitcoin Playbook

BitMine’s approach mirrors what MicroStrategy, now rebranded as Strategy, achieved with Bitcoin under Michael Saylor. By systematically converting cash into BTC, Saylor positioned his firm as the largest Bitcoin treasury, effectively becoming a “sovereign put” for the asset. Lee believes Ethereum is now at a similar stage, and by applying a comparable playbook, BitMine could carve out the same strategic role in the ETH ecosystem.

Notably, BitMine is accumulating ETH at roughly 12 times the pace that MicroStrategy accumulated Bitcoin in its early days, suggesting a more aggressive timeline to reach strategic significance.

How BitMine Executes Its ETH Accumulation

BitMine kicked off its ETH treasury pivot in June 2025 with a $250 million capital raise, using the proceeds to begin large-scale accumulation.

The $2 Billion ATM Stock Sale Program

On top of that, BitMine has arranged an At-The-Market or ATM program which allows them to gradually sell new shares at current market prices rather than all at once in a large block. The $2 billion ATM stock sale program will raise funds through shares sold over time. The sales will be handled by Cantor Fitzgerald and ThinkEquity who will receive a small commission of up to 3% on the proceeds. 

By selling its shares directly into the market over time, BitMine has the flexibility of raising money whenever market conditions are favorable. However, it also means that new shares will be issued over time which could dilute existing shareholders. 

Strategic Investor Backing (ARK Invest, Founders Fund)

This bold strategy has attracted backing from key institutional investors such as ARK Invest, led by Cathie Wood, as well as Founders Fund, the venture capital firm co-founded by Peter Thiel. Other prominent investors include long time Bitcoin supporter Bill Miller III, Pantera Capital, and Galaxy Digital. Their involvement not only provides capital but also validates BitMine’s credibility on Wall Street and in the crypto markets.

The Dual-Business Model Advantage

BitMine’s strategy stands out because it combines immersion-cooled Bitcoin mining and its Ethereum treasury in its business model. A treasury strategy means using company funds to buy and hold crypto assets as investments rather than for immediate spending. The mining side provides steady operational revenue, while the treasury side builds long-term value by accumulating and staking ETH. Together, these create a balance between short-term cash flow and a high-conviction bet on Ethereum’s future.

Immersion-Cooled Mining Operations

BitMine’s immersion cooling technology involves submerging hardware in a special, non-conductive cooling liquid instead of relying on traditional air-cooling setups. It reduces thermal stress on the chips, extending hardware lifespan and delivering long-term cost savings.

25-30% Hashrate Boost Through Advanced Cooling

This technique of cooling Bitcoin mining rigs allows for the machines to be safely overclocked without overheating. BitMine claims that it has provided a 25-30% boost in hashrate since each machine can generate more computational power, allowing the company to earn more Bitcoin.

Energy Efficiency and Silent Operations

Another advantage of immersion cooling is that BitMine says they are able to achieve up to 40% lower energy consumption since they can eliminate the need for large air conditioning systems and fans. As a result, the company can benefit from lower operating costs, improved sustainability, and near silent operations. 

Strategic Mining Locations (Texas, Trinidad)

By reducing operation noise to near silent, BitMine has the flexibility to establish operations in diverse locations. The company has strategically placed mining sites in Texas and Trinidad & Tobago, areas that are known for abundant and inexpensive power. 

ETH Treasury Strategy Integration

The second pillar of BitMine’s model is its ETH treasury, designed to create long-term strategic value. Despite only launching in mid-2025, the company has already built the world’s largest ETH treasury and remains determined to reach its 5% supply goal.

Revenue Reinvestment and Staking Rewards

A key part of this strategy is reinvesting mining revenue into ETH purchases. This self-funding loop reduces reliance on constant capital raises and makes the business model more sustainable over time. 

On top of that, BitMine stakes a portion of its holdings to earn annual yields of around 3–4%, adding a stream of passive income that compounds growth while also integrating the company directly into Ethereum’s network security. 

BMNR Stock as an Ethereum Investment Vehicle

For traditional investors, BMNR stock offers a way to gain exposure to Ethereum without directly holding the token. Instead of dealing with wallets, private keys, or regulatory hurdles, investors can buy BMNR shares, which move closely with ETH’s price. 

Analysts and investors often view BMNR stock as behaving like a leveraged proxy for Ethereum, since its valuation is closely tied to ETH price movements and the pace of its treasury growth.

While ETH ETFs provide direct, regulated exposure to Ethereum’s price movements, BMNR offers potential upside beyond just ETH appreciation through its dual revenue streams (mining operations and staking rewards), aggressive accumulation strategy, and the possibility of trading at a premium to its underlying ETH holdings – though this comes with significantly higher volatility and dilution risks.

Each approach to Ethereum exposure comes with distinct trade-offs that investors should consider:

BMNR: The ETH Treasury Race

While BitMine dominates as the world’s largest ETH treasury, several other companies are pursuing similar strategies, with SharpLink Gaming (SBET) being its most notable competitor.

BitMine vs. Sharplink Gaming (SBET)

SharpLink is one of the first companies to develop an ETH treasury and might be another option for investors. However, there are a few elements that differ between both treasuries that should be taken into consideration. 
 

SharpLink positions its strategy around steady ETH accumulation and staking yields, which many observers describe as resembling a more yield-oriented ETH vehicle, offering potentially less volatility. BitMine, by contrast, is focused on rapid accumulation, backed by major Wall Street investors, and reinforced by its mining operations. This makes BMNR a potentially higher-risk, higher-reward option, while SBET might appeal more to investors seeking gradual exposure and stability.

Unique Advantages: Leadership, Technology, Scale

BitMine benefits from a rare mix of leadership, technology, scale, and support.

• Leadership: Tom Lee of Fundstrat brings along his reputation as a respected Wall Street strategist, giving credibility and institutional attention to BitMine. 

• Technology: BitMine’s immersion-cooled mining technology provides a 25-30% hashrate boost, 40% lower energy costs, and silent mining operations to produce a steady flow of revenue that can be reinvested into ETH accumulation. 

• Scale: The company’s successful accumulation of more than 1.71 million ETH (worth around $7.5 billion) within weeks signals to investors that it is well suited to reach the target of holding 5% of Ethereum’s total supply. 

• Support: Institutional backing from investors such as ARK and Founders Fund indicate support from well known players in the financial space.

Mining Operations as Competitive Moat

The mining business gives BitMine a self-reinforcing advantage. Efficient, low-cost operations in Texas and Trinidad generate steady revenue that is reinvested into ETH accumulation. Immersion cooling makes the sites more sustainable and community-friendly, while low-cost electricity contracts ensure an enduring cost advantage that many rivals cannot match.

Understanding the Risks and Criticisms

While BitMine’s dual-business model makes BMNR a compelling Ethereum investment vehicle, investors still need to weigh the potential risks and criticisms.

Extreme Volatility and Leverage Exposure

BMNR stock gives investors amplified exposure to Ethereum, rising faster when ETH goes up but falling harder when it drops. This is because of its huge ETH holdings and heavy reliance on stock sales and debt to keep buying more. The approach can drive big gains in good markets, but it could also bring high risks of volatility, dilution, and financial pressure if ETH or investor sentiment turns negative.

Massive Share Dilution from Stock Sales

A major risk for investors is share dilution from BitMine’s frequent stock sales. Share dilution occurs when a company issues new shares, which reduces the ownership percentage and potential value of existing shares. The company uses at-the-market offerings and other equity raises to fund its fast ETH accumulation, which increases the number of shares and reduces the value of each one. This helps grow its ETH treasury but spreads that value across more shareholders, and if shares are sold cheaply or in large amounts, the impact can hit BMNR’s stock price even harder.

Single-Asset Concentration Risk

BitMine carries single-asset concentration risk since its strategy depends almost entirely on Ethereum. This focus could pay off if ETH grows, but it also leaves the company exposed to regulation, competition, or price drops. As a result, BMNR’s value moves closely with Ethereum, making it both a strong proxy and a risky bet.

Regulatory and Market Manipulation Concerns

BitMine also faces regulatory and market manipulation risks tied to Ethereum. Rules on staking or treating ETH as a security could slow growth, while the crypto market’s volatility and susceptibility to manipulation add more uncertainty. Even if BitMine executes well, outside shocks could hurt confidence in its stock.

Conclusion: The Future Impact on Ethereum and Crypto Markets

BitMine represents one of the boldest experiments in corporate crypto strategy, combining advanced mining operations with an unprecedented push to build an Ethereum treasury. Its ambition to secure 5% of ETH’s supply positions it as both a high-risk investment vehicle and a potential catalyst for wider institutional adoption of Ethereum.

Path to the Ambitious 5% Goal

The path forward will depend on disciplined execution — balancing aggressive fundraising with sustainable treasury management, reinvesting mining revenues, and compounding growth through staking rewards. 

Potential Market Effects of Large ETH Accumulation

If successful, BitMine’s large-scale accumulation could tighten ETH supply, support prices, and make the company a strategically important player in the ecosystem.

Institutional Validation of Ethereum

Backed by investors like ARK Invest and Founders Fund, BitMine also signals growing institutional validation of Ethereum as a legitimate treasury asset. While risks around volatility, dilution, and regulation remain, BMNR has the potential to shape not just Ethereum’s market dynamics, but also how corporations participate in the crypto economy.