Wall Street Meets Artificial Intelligence: BitMine Invests $1.28 Billion in Ethereum's Prospects

BitMine Immersion Technologies has become the leading public

(ETH) holder, now possessing 2.416 million ETH—more than 2% of the total coins in circulation—after securing $365 million in new funding. With these assets valued at about $10.9 billion, BitMine ranks just behind MicroStrategy in terms of crypto treasury size. This accumulation is part of BitMine’s “Alchemy of 5%” campaign, which seeks to acquire 5% of all Ethereum to strengthen its position in institutional blockchain adoption.

The capital was raised through a premium stock and warrant sale, where 5.22 million shares were issued at $70 each—14% higher than the previous closing price—alongside 10.4 million warrants that can be exercised at $87.50. Should all warrants be exercised, the company could raise an additional $913 million, pushing total proceeds to $1.28 billion. Tom Lee, BitMine’s chairman, stated that this move demonstrates institutional trust in Ethereum as the foundation for tokenized assets and AI-powered financial systems. “The intersection of Wall Street and AI on blockchain will spark a new supercycle for Ethereum,” Lee commented.

BitMine now holds $11.4 billion in combined cryptocurrency and cash, including $345 million in liquid funds and a $175 million equity interest in Eightco Holdings. The company’s average purchase price for Ethereum is $4,500 per coin, while the current market price is $4,200, putting them at a temporary 7% unrealized loss. Nonetheless, BitMine remains focused on its long-term objectives, having previously bought 46,255 ETH for $200 million in September.

Institutional backing has been crucial to BitMine’s expansion. ARK Invest, led by Cathie Wood, acquired over 101,950 shares, indicating growing acceptance of crypto treasuries as a strategic corporate asset. BitMine’s stock is now among the 24 most traded in the U.S., drawing interest for its liquidity and its alignment with Ethereum’s increasing use in decentralized finance (DeFi), tokenization of real-world assets, and AI applications.

Experts believe BitMine’s assertive acquisition strategy could alter Ethereum’s market landscape. By aiming for 5% of the supply, the company could impact staking and governance, potentially increasing Ethereum’s scarcity as institutional adoption rises. However, the stock’s 9% drop after the announcement reflects investor worries about dilution and short-term price swings.

This development highlights a larger movement of institutions utilizing Ethereum’s infrastructure. As Ethereum becomes a core settlement platform for tokenized assets and AI-based solutions, BitMine’s approach signals strong faith in the network’s future leadership. Achieving its 5% goal would make BitMine a major force in shaping Ethereum’s direction, similar to the influence seen in

treasuries.