Altcoins News

Story: Bitmine Drops $136 Million on Ethereum After $274 Million Stock Sale

By Pankaj K

1 / 12

Why Preferred Stock, and Why Now. Preferred stock sales are interesting because they let a company raise serious capital without…

2 / 12

What $136 Million in Ether Actually Means. Ether has had a complicated few years relative to bitcoin. Bitcoin's ETF approvals in the U.S.

3 / 12

Bitmine just spent $136 million on ether. The company bought the crypto after closing a $274 million preferred stock sale — a financing move straight out of Michael Saylor's…

4 / 12

The preferred stock raise is the key piece here. Saylor's firm, Strategy, basically invented this approach for crypto treasury building — sell preferred shares, take the…

5 / 12

Preferred stock sales are interesting because they let a company raise serious capital without immediately hammering existing shareholders through dilution the way a common stock…

6 / 12

It's a structure that's gained traction fast among crypto-focused treasury companies. The basic logic: traditional equity markets are deep and liquid, crypto markets are volatile…

7 / 12

That's a deliberate distinction worth sitting with. Bitmine isn't buying bitcoin here. It's buying ether — the native asset of the Ethereum network, the blockchain that underpins…

8 / 12

Ether has had a complicated few years relative to bitcoin. Bitcoin's ETF approvals in the U.S. drove enormous institutional inflows and pushed its price to new highs.

9 / 12

But there's a case to be made that ether is undervalued relative to what the Ethereum network actually does.

10 / 12

Related: XRP ETFs Beat Bitcoin and Ethereum in Inflows for Fifth Straight Week

11 / 12

Bitmine seems to believe that case. A $136 million purchase isn't a toe-dip. That's a conviction trade.

12 / 12

The company hasn't released a detailed public roadmap for what it plans to do with the ether once it holds it — whether it intends to stake the assets, hold them flat, or…

The Currency Analytics

Want the full story?