Issuing 100 times more, stock price soars by 14%, what move is Tom Lee making on BitMine?

BitMine Chairman Tom Lee recently proposed a bold plan: to increase the company’s authorized shares from 500 million to 50 billion. This 100-fold increase may seem exaggerated, but market reactions have been surprisingly positive. Following the news, BitMine’s stock price rose 14% on Friday, trading at $30.93. In the context of a generally sluggish crypto market, why does this issuance proposal attract investor enthusiasm? The underlying logic warrants in-depth understanding.

Strategic Considerations Behind the Aggressive Share Issuance

The Three Purposes of the Share Increase

According to Tom Lee, expanding the authorized share pool mainly supports three types of capital operations:

• Conducting capital market activities to provide flexibility for company financing
• Supporting potential mergers and acquisitions to enhance strategic M&A capabilities
• Performing stock splits to keep the share price within a relatively reasonable range

These explanations sound legitimate, but the key is to understand BitMine’s current situation. According to the latest data, BitMine’s stock price has fallen 82.77% from its peak, and the company faces severe financial pressure. The authorization for issuance is, to some extent, reserving space for possible financing or strategic adjustments.

The Deep Link Between Stock Price and ETH

Tom Lee emphasized an important correlation: BitMine’s stock price is highly correlated with Ethereum’s price. This is not empty talk. Public information shows that BitMine holds approximately 4.11 million ETH, accounting for 3.4% of Ethereum’s circulating supply, making it one of the largest institutional ETH holders. When ETH’s price rises, the company’s financial situation improves; conversely, when ETH falls, so does its financial health.

This also explains why Tom Lee advocates for stock splits. If Ethereum’s price surges significantly, BitMine’s stock price could become too high, which is unfavorable for trading liquidity and market participation. The authorization for issuance leaves room for future splits.

Why the Market Is Buying In

Investor Optimism Signals

The market’s positive response to this proposal reflects investor expectations on two fronts:

First, recognition of Tom Lee’s outlook on the crypto market. According to reports, Tom Lee has recently expressed optimism about the prospects of digital assets in 2026, believing that the parabolic trends of gold and silver indicate opportunities in cryptocurrencies. He even predicts Bitcoin could reach $180,000 by the end of January, and Ethereum could break through $62,000.

Second, confidence in BitMine’s strategic execution capabilities. Despite the sharp decline in stock price, BitMine continues to increase its ETH holdings. In late December, when Ethereum’s price dropped, BitMine added over 44,000 ETH. This persistence in accumulating during lows signals management’s confidence to the market.

Korean Investors’ Voting

Interestingly, reports indicate that BitMine’s stock was among the top ten foreign securities most purchased by Korean investors in 2025, ranking second only to Alphabet, Google’s parent company. Korean investors continue to buy despite losses, indicating a strong consensus on BitMine’s long-term prospects.

The Practical Significance of the Share Increase

Reserving Ammunition for Possible Financing

In a sluggish stock price environment, direct financing is difficult. The authorization for issuance essentially provides management with a “backup”—when conditions improve, they can flexibly pursue financing or equity incentives.

Preparing for Strategic M&A

The crypto industry is undergoing an integration phase. If BitMine intends to pursue strategic mergers and acquisitions, the authorization for issuance can provide the necessary flexibility. This aligns with Tom Lee’s statements about “Wall Street entering” and “traditional finance RWA going on-chain.”

Preemptive Positioning for Future Upside

From a certain perspective, this proposal also reflects management’s confidence in its own strategy. The authorization for issuance is not necessarily for immediate financing but reserves space for future operations such as financing, M&A, or splits. This “preemptive” approach is often interpreted by the market as an optimistic outlook on the company’s future.

Summary

Tom Lee’s proposal for issuance seems bold but is actually a pragmatic move to reserve flexibility for strategic operations amid a depressed stock price and large ETH holdings. The market’s positive reaction (a 14% increase) reflects investor recognition on two levels: confidence in Tom Lee’s outlook for the crypto market, and acknowledgment of BitMine’s long-term value as the largest institutional ETH holder.

What to watch next is whether shareholders will approve this proposal, and how BitMine will execute this authorization depending on ETH price movements. In a sense, BitMine’s future is closely tied to Ethereum’s performance in 2026.