Tom Lee's Bitmine Surges 3,000% Since ETH Treasury Strategy, but Sharplink's Plunge Warrants Caution

9 hours ago

Bitmine Immersion (BMNR), the ether treasury strategy steadfast helmed by Fundstrat's Thomas Lee, is the latest red-hot crypto proxy play successful town.

The company's shares much than doubled connected Thursday topping $140, present rallying implicit 3,000% successful little than a week since the steadfast announced the raising of $250 cardinal by selling shares to get ETH.

The backstage placement offering, priced astatine $4.50 per stock and owed to adjacent today, attracted organization investors including Founders Fund, Pantera, FalconX, Kraken, Galaxy Digital, DCG.

At its core, Bitmine is positioning itself arsenic a publically traded proxy for ether exposure, akin to however Michael Saylor's Strategy (MSTR) became a leveraged bitcoin bet. The attack has gained traction precocious arsenic investors look for caller ways to entree crypto done nationalist equities.

The steadfast primitively focused connected crypto mining utilizing immersion cooling and held $16 cardinal successful bitcoin anterior to the fundraising.

Sharplink déjà vu

But a akin crypto treasury stock's accelerated emergence and autumn whitethorn connection a cautionary tale.

The parabolic emergence successful BMNR mirrors the trading behaviour of Sharplink Gaming (SBET), different nationalist institution that repositioned itself arsenic an ETH treasury steadfast past period nether the enactment of Consensys co-founder Joseph Lubin.

Sharplink soared arsenic overmuch arsenic 4,000% successful days pursuing its $450 cardinal fundraising announcement. Shares since plunged implicit 90% from highest arsenic the steadfast closed its ETH acquisition and aboriginal investors successful the backstage placement sold banal locking successful their profits.

Bitmine’s valuation, with a marketplace capitalization implicit $800 cardinal astatine existent prices, already prices successful assertive assumptions astir the firm's aboriginal ETH gains.

Retail investors chasing the momentum should tread carefully.

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