Bitmine plans to invest over $2 billion in Ethereum through stock sale

Bitmine plans to significantly expand its Ethereum holdings. Through a large stock sale, it plans to increase from $2 billion to $4.5 billion. To support this move, it has signed a sales contract with Cantor Fitzgerald.

Currently, many companies are making large-scale ETH investments. This is causing record inflows and price surges. A new all-time high for Ethereum is certainly possible, which is encouraging for mining companies.

Bitmine's Big Bet on Ethereum

Bitmine was initially a Bitcoin mining company. However, this industry has seen declining profitability in recent months. Last July, the company announced a $250 million Ethereum investment. This joined the broader trend of institutional ETH purchases.

Today, Bitmine submitted an application to offer a significant portion of company stock to purchase more Ethereum:

Bitmine currently holds $2 billion in Ethereum. However, the company plans to increase this to $4.5 billion. This will be achieved through sales contracts with ThinkEquity and Cantor Fitzgerald. A company linked to Trump and known for significant corporate cryptocurrency finance investments.

The company may be gambling, but institutional ETH investments are increasing. This could help reduce the risks of large-scale Ethereum reserves.

Since Bitmine first announced its new Ethereum policy, Peter Thiel's fund has purchased a significant stake in the company. And Ark Invest has invested $175 million. So far, today's announcement is positive:

Clearly, this is not the only positive signal. Bitmine has chosen a good time to support Ethereum. Weekly inflows are hitting all-time highs. The wave of corporate investment has buoyed the asset's price. A rally to a new all-time high may be possible.

Investors have raised bubble concerns due to corporate Bitcoin acquisitions. However, ETH is a less saturated market. Compared to BTC, Bitmine is more likely to have a direct impact on Ethereum.

Bitwise predicts $20 billion in institutional ETH investments next year. Bitmine will account for more than one-fifth of this. This factor could provide substantial protection.