Tom Lee’s Ethereum-focused treasury firm, Bitmine Immersion, has announced a stock repurchase program worth up to $1 billion. The initiative, approved by the board of shareholders on July 29, will allow the company to buy back its common stock through open market purchases and negotiated transactions, depending on market conditions.
Despite the significant announcement, investor sentiment appeared negative. Following the news, Bitmine Immersion’s stock (BMNR) dropped 8.86% in the past 24 hours, falling to $32 on July 30.
This marks a sharp decline from just a month ago, when BMNR shares skyrocketed nearly 700% to reach $135. The previous rally was largely attributed to Bitmine Immersion’s transition into an Ethereum treasury-focused business.
Despite the recent dip in stock price, Bitmine Immersion Chairman Thomas “Tom” Lee downplayed concerns that investors were dissatisfied with the buyback announcement.
“I believe the drop in share price simply aligns with the share registration process—those shares became available for trading today,” Lee explained in an interview with Bloomberg.
In an official press release, Lee emphasized that the buyback was driven by long-term sustainability goals rather than a push to increase the company’s Ethereum holdings. As of July 30, Bitmine Immersion holds approximately 625,000 ETH in its reserves.
“As we work toward achieving our goal of ‘the alchemy of 5%’ of the ETH supply, there may be moments when the most strategic use of our capital is to repurchase our own shares,” Lee added.
Bitmine’s Transition to an Ethereum-Focused Treasury Strategy
On June 30, Bitmine Immersion, a small-scale crypto mining firm, pivoted from its original Bitcoin-focused treasury strategy to an Ethereum-centric approach. This strategic shift was underscored by two major corporate moves.
First, the company launched a substantial $250 million private placement to acquire Ethereum. Second, Bitmine appointed Fundstrat founder Tom Lee as its new chairman, citing his expertise in managing Ethereum-based funds as a key factor behind the decision.
Following the announcement of plans to raise capital for expanding its ETH reserves, Bitmine’s stock skyrocketed nearly 700%, hitting a new all-time high. The company now holds a market capitalization of $3.59 billion.
