From Bitcoin mining to the crown of Ethereum
Founded in 1995, the Atlanta-based company initially focused on software and IT services. Over time, it made its first shift toward the Bitcoin mining industry, operating immersion-cooled data centers to maximize its computing power. This transition made BitMine a mid-sized Bitcoin miner, hosting hardware for third parties and mining on its own behalf.
Then, in 2025, came a radical shift. Out went BTC mining, replaced by a crazy strategy: accumulating ETH like no one had ever done before. In just six weeks, the company became the largest holder of ether in the world. Its goal? To add another $20bn to strengthen its lead. A lightning offensive, reminiscent of Strategy's first masterstrokes in 2020, when Michael Saylor decided to bet the future of his company on Bitcoin.
The alchemy of 5%
Behind this bold bet is Tom Lee, a respected Wall Street figure and co-founder of Fundstrat Global Advisors. Tom Lee became president of BitMine in June 2025, bringing with him his conviction that the future of decentralized finance will largely be played out on Ethereum. His strategic credo, poetically named "Alchemy of 5%," is simple to state but ambitious: accumulate 5% of the total supply of ether. In concrete terms, this represents approximately
6 million ETH (out of a current supply of approximately 120.7 million tokens).
Reaching this level would make BitMine a virtually indispensable player in the Ethereum ecosystem, with enough clout to potentially influence the network itself. To date, the company already holds 1.9 million ETH, or more than 31% of its target in record time. While Strategy controls about 3% of the Bitcoin in circulation, BitMine is preparing to surpass this symbolic milestone with Ethereum.
Powerful allies
Investors who participated in recent fundraising rounds include well-known names such as Peter Thiel (Founders Fund), Cathie Wood (ARK Invest), and Bill Miller III (legendary value investor). These three iconic investors are capable of attracting even the most cautious institutional capital. Other renowned crypto funds—Pantera Capital, Galaxy Digital, Digital Currency Group, and Kraken—are also involved in the funding round. This gives BMNR immediate legitimacy with major funds, beyond simple crypto speculation.
The secret to the treasures: staking
One detail sets Strategy's Bitcoin strategy apart from BitMine's Ethereum strategy: the ability to stake ether. Unlike bitcoin, which remains an idle asset in a portfolio, ether holdings can be staked on the Ethereum network. Staking involves locking up ETH to help secure the Proof of Stake network, in exchange for which you receive annual rewards—typically around 3-5% interest per year in ETH.
For BitMine, which claims to be the world's largest ETH "vault," this is a considerable asset. With more than 1.9 million ETH, the company potentially earns passive income exceeding a 2% annual return on its assets. This interest in ETH boosts its cash flow at no additional cost, creating a free cash flow that it can reinvest in accumulating new ethers. This snowball effect allows BitMine to increase its reserves even without new fundraising, simply by taking advantage of the very functioning of Ethereum.
In the long term, if BitMine achieves its goal of 6 million ETH and the staking yield remains around 4%, this would represent more than 240,000 ETH per year generated in interest—enough to partially self-finance the growth of its reserves. This is why Tom Lee refers to Ethereum as a "productive asset," one that could accelerate the achievement of the famous 5% global supply threshold.
The risks of such an ambitious bet
Despite its appeal, BitMine's strategy is not without risk. It should be remembered that BMNR remains first and foremost a publicly traded stock, with all that that implies in terms of volatility and market psychology. The share price may fall even if the price of ETH rises, for example in the event of massive profit-taking by early investors or if the market considers the stock to be overvalued relative to the value of its assets. Unlike direct ownership of ETH, investing via BitMine exposes investors to exogenous factors such as stock market liquidity, shareholder sentiment, management risk, etc.
Another potential pitfall is the specter of dilution. To finance its massive purchases of ETH, BitMine has issued and will issue new shares—which increases the number of shares to be distributed over the same "pie" of crypto assets. If the company raises capital when its share price is low, existing shareholders will see their share of cash per share decrease. Tom Lee is aware of this and emphasizes the concept of "accretion" rather than dilution: as long as the value in ETH per share increases, the transaction benefits shareholders.
So far, BitMine has succeeded in this gamble. For example, between the end of July and the end of August 2025, the net crypto value per share (crypto assets + cash divided by the number of shares) rose from $22.84 to $39.84. In other words, each BMNR share represented the equivalent of $4 worth of ETH when the strategy was launched, then around $40 worth of ETH a few weeks later—a tenfold increase that demonstrates effective value creation for existing shareholders.
MarketScreener
However, this balance remains fragile: it assumes that the market's appetite for financing BitMine remains strong and that the share price remains high enough during future fundraisings. Otherwise, BitMine could find itself forced to raise funds at the wrong time, significantly diluting its shareholders. It is a balancing act that management will have to manage with finesse in order to maintain investor confidence.
ETH, the king of the cycle?
Beyond the company itself, it is the underlying asset that dictates the future: Ethereum. With the arrival of spot ETFs, the rise of decentralized finance (DeFi), the tokenization of real assets, and clearer regulation, all the ingredients seem to be in place for a prolonged rise. BitMine's presentations do not hesitate to project ether at $60,000. A bold target—perhaps too bold—but one that reveals the mindset. It remains to be seen whether the bet will pay off. BMNR, like any company, may face volatility, management errors, or market mistrust. To be continued.
We have already discussed the risks associated with this type of strategy on Bitcoin in the following articles:
