Ethereum Treasury Company announces increased authorized capital, ETH target price projected to reach $250,000?

【Blockchain Rhythm】An interesting trend worth paying attention to—Tom Lee, Chairman of Ethereum Treasury Company, recently revealed a plan on social media, stating that the company needs to increase authorized share capital, with three main considerations behind it.

First is financing flexibility, to create more operational space for the company through ATM mechanisms and financing needs; second is to avoid being constrained by share capital when seizing strategic opportunities like mergers and acquisitions; the third and most crucial is to reserve sufficient authorized space for future stock splits.

There is a logical chain worth pondering: Lee believes that as Ethereum is validated as the future of finance, the target exchange rate for ETH and BTC could reach 0.25. If ETH rises to $250,000 in the future, the company’s stock price could surge to $5,000. In this case, the barrier for ordinary investors to participate would be too high. Therefore, the company plans to reset the stock price to around $25 through a stock split, making it easier for more people to participate. But to implement this stock split plan, sufficient authorized share capital must be in place—that’s the real reason for increasing authorized share capital in advance.

Once these comments were made, the market reacted quite sharply. BMNR’s closing price last Friday soared directly to $31.19, with a single-day increase of 14.88%. It seems investors are quite receptive to this outlook.