Tom Lee’s BMNR is staking more than 25% of its Ethereum treasury before the shareholder vote.
BMNR, a company backed by Tom Lee, has recently staked over a quarter of its Ethereum treasury in anticipation of a shareholder vote scheduled for Thursday. The vote will decide whether the company can increase its authorized shares from 500 million to 50 billion, a move aimed at expanding Bitmine’s acquisition of Ethereum.
The company has augmented its staking activity by adding 186,650 Ethereum to its treasury, boosting its total staked balance to 1.53 million ETH. This increase represents a substantial portion of BMNR’s Ethereum holdings, now totaling around 4.16 million ETH, following the recent acquisition of an additional 24,366 ETH on Monday. With approximately 25% of its crypto treasury now deployed in yield-generating activities, BMNR aims to maximize returns from its holdings.
As BMNR’s staking activity escalated, its stock saw a corresponding uptick, rising by 3.6% in pre-market trade. This coincided with a 6.1% increase in Ethereum’s price to over $3,300 within a 24-hour period. Retail sentiment surrounding Bitmine on Stocktwits shifted from ‘bearish’ to ‘bullish’, accompanied by a significant spike in message volume.
Additionally, Ethereum experienced a surge in retail sentiment, shifting from ‘extremely bearish’ to ‘neutral’, aligning with an increase in discussions about the cryptocurrency. These developments suggest growing optimism in both Bitmine and Ethereum among retail investors.
The impending shareholder vote will determine Bitmine’s ability to increase its authorized shares, allowing the company to acquire more Ethereum and achieve its goal of accumulating 5% of ETH’s total circulating supply. Tom Lee emphasized the necessity of this increase to prevent Bitmine from facing a slowdown in Ethereum accumulation once its current authorization of 500 million shares is exhausted.
The staking spree sends a positive signal to the market, indicating Bitmine’s intention to acquire more Ethereum and lock it away for shareholder returns. Although the vote requires 50.1% approval, concerns about dilution have been raised by some shareholders.
In conclusion, with the surge in staking activity and the impending shareholder vote, Bitmine, supported by Tom Lee, is poised for further expansion of its Ethereum holdings. As retail sentiment turns bullish for both Bitmine and Ethereum, investors are eagerly anticipating the outcome of Thursday’s vote and the potential growth opportunities it could unlock for the company.
