BitMine plans to raise $20 billion to purchase ethereum

Bitmine Immersion is raising its fundraising target for purchasing more ethereum to $20 billion, according to a filing with federal regulators on Tuesday. The company is determined to maintain its position as the world’s largest ethereum treasury.

The cryptocurrency mining company aims to raise a total of $24.5 billion. This announcement marks a dramatic expansion of the common stock sale, for which the company has already made its shares worth $4.5 billion available to investors.

According to the sale, common shares of Bitmine Immersion will cost $0.0001 each. It is unclear what percentage of Bitmine’s revenue from the stock sale will go towards purchasing ethereum. The expansion of the common stock sale by Bitmine Immersion comes at a time when an increasing number of publicly traded companies are establishing ethereum treasuries, driving a resurgence in the cryptocurrency’s price.

Sharplink Gaming, BitMine, EtherMachine, and Bit Digital have primarily begun to pivot towards accumulating large amounts of ethereum as a corporate strategy, adapting the playbook of software company Michael Saylor’s Strategy, which is the largest corporate holder of bitcoin. The holdings of these companies could soon account for 10 percent of the total ethereum in circulation, according to one analyst at Standard Chartered.

And while publicly traded companies are grabbing ever-increasing amounts of ethereum, the price of the second-largest cryptocurrency has risen significantly. Ethereum is trading above $4600 at the time of writing, which is a 50 percent increase over the past month and more than 70 percent since the beginning of the year.

This places it less than 9 percent below the peak of just above $4900 reached in November 2021. As the value of ethereum has grown, so have the shares of Bitmine Immersion. The company’s shares traded at $62.05 on Tuesday, marking a 51 percent increase over the past month and an almost 700 percent increase year-over-year.