Sharplink Gaming recently shocked markets with a staggering 4,000% surge following news of a $450 million fundraising effort, only to lose 90% of its value in the weeks afterward—a dramatic example of how volatile crypto-focused stocks can be.
Now, Bitmine Immersion (BMNR), led by Fundstrat’s Thomas Lee, is the latest crypto stock attracting frenzied attention. The company’s shares more than doubled in value on Thursday alone, topping $140, and have skyrocketed over 3,000% in under a week after revealing plans to raise $250 million through a private share sale aimed at acquiring ether (ETH).
The private placement, set at $4.50 per share and expected to conclude today, has drawn significant backing from prominent institutional investors like Founders Fund, Pantera, FalconX, Kraken, Galaxy Digital, and Digital Currency Group (DCG).
Bitmine is positioning itself as a public-market proxy for ether exposure, similar to how Michael Saylor’s MicroStrategy became known for its bitcoin holdings. Investors have shown heightened interest in such strategies as they look for new ways to tap into crypto markets through publicly traded vehicles.
Prior to this shift in strategy, Bitmine was mainly engaged in crypto mining using immersion cooling technology and already held roughly $16 million worth of bitcoin.
Sharplink’s Roller Coaster a Potential Warning
Bitmine’s rapid ascent is reminiscent of Sharplink’s meteoric rise and equally sharp collapse. Sharplink, under new leadership from Consensys co-founder Joseph Lubin, pivoted into an ETH treasury model last month, sparking a 4,000% spike in its share price after announcing a $450 million capital raise. But following its ETH acquisition, the stock plummeted more than 90% as early private placement investors offloaded shares to lock in profits.
Bitmine’s current market capitalization exceeds $800 million and could balloon to nearly $7 billion if its new share issuance is fully accounted for, reflecting high expectations for its future ETH holdings.
Against this backdrop, retail investors considering jumping into Bitmine’s rally should exercise caution, given the volatility that similar moves have triggered in the past.
