Bitmine Immersion Technologies (BMNR) shares plunged an additional 20% on Thursday, deepening a sharp two-day decline after the company disclosed plans to raise up to $2 billion via an at-the-market (ATM) stock offering. The drop follows a 40% decline the previous day, bringing the total drawdown to 65% in just 48 hours.
$2 Billion Stock Offering Triggers Market Selloff
In an SEC filing published Wednesday, Bitmine revealed it had entered an agreement with Cantor Fitzgerald and ThinkEquity to sell up to $2 billion in common stock. The ATM structure allows Bitmine to issue and sell shares gradually into the open market, offering flexibility to raise capital as needed.
Cantor Fitzgerald will act as the lead agent for the offering, with shares sold directly on the open market at prevailing prices and times determined by the company.
Ethereum Treasury Strategy Draws Attention — and Volatility
Bitmine’s stock had previously soared over 3,000% after announcing a bold Ethereum-focused treasury strategy and appointing Fundstrat’s Thomas Lee as chairman of the board. The announcement made headlines as Bitmine pivoted from its legacy business model to a crypto-centric capital allocation approach, primarily focused on ether (ETH).
However, the recent stock offering and its timing have raised investor concerns about dilution risk and market overexuberance.
Echoes of Sharplink Gaming’s Rise and Fall
Market observers are drawing parallels to Sharplink Gaming (SBET), a company that experienced a similar ETH treasury-fueled rally, only to see its stock collapse over 90% after early investors exited. A recent report had warned that Bitmine’s price action might follow a similar trajectory, contributing to the selling pressure.
The stock has now shed 65% since that report was published, despite Bitmine’s prior success in raising $250 million in funding before the $2B offering announcement.
What’s Next for Bitmine?
While the company’s long-term vision of crypto asset integration and Ethereum accumulation continues to draw investor interest, the aggressive capital raise has cast doubt over short-term valuation. As Bitmine begins executing its ATM strategy, market watchers will look closely at share dilution, cash deployment, and any ETH acquisition updates.
Bitmine’s story serves as a cautionary tale about the high-stakes nature of crypto-treasury strategies—rewarding in bull markets, but equally risky when sentiment shifts.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.