BitMine Spikes 700% in 24 Hours: Is It the MicroStrategy of Ethereum?
BitMine Immersion Technologies (NYSE American: BMNR) stock has exploded, rising more than 700% in just one day following the shocking news that veteran Fundstrat strategist Tom Lee has been appointed Chairman of the Board. But it’s the company’s $250 million Ethereum treasury strategy that has investors really interested. Many are asking: Is BitMine shaping up to be the MicroStrategy of ETH?
A Bold Bet on Ethereum
BitMine has just announced plans to launch the largest Ethereum treasury strategy ever in the public enterprise space, privately raising $250 million to accumulate ETH and become the largest listed Ethereum holder globally.
The move comes just days after Bit Digital (BTBT) pivoted to becoming an ETH staking and treasury company. Unlike Bit Digital, however, BitMine has retained its Bitcoin mining operations and integrated ETH as a core reserve asset, expanding its strategy to two key market assets.
Corporate Structure and Business Model
BitMine positions itself as a “Bitcoin network company,” but its operations range from mining, providing Mining-as-a-Service services, to cryptocurrency financial consulting. Despite having only about 3,392 miners as of May 2025, BitMine is relatively small in scale, but is expanding into high-margin services such as treasury consulting and hash rate rental.
BitMine maintains five mining sites in the US and Trinidad & Tobago. A major $4 million contract was signed earlier this year to lease 3,000 ASIC miners to institutional clients, indicating growth potential in the mining services segment.
Financial Leap
According to the financial report for the second quarter of 2025 (ending in May), BitMine's revenue reached an all-time high of $2.05 million, up nearly 70% from the previous quarter. The rental segment (MaaS) brought in the largest gross profit, indicating that the strategy of shifting to a light recurring revenue model is working.
However, the company's self-mining Bitcoin business has yet to be profitable, with a gross profit margin of just 3.4%, indicating that operating and input costs remain high. Meanwhile, the consulting segment, although small, shows great potential, with a profit margin of more than 78%.
On the balance sheet, BitMine has total assets of $8.26 million, with cash up nearly 200% on the year and liabilities down 36%. The current ratio is strong (~4x), but shareholders' equity is down 29.6%, largely due to accumulated deficits, a sign that the company is still in the growth investment phase and has yet to generate sustainable cumulative profits.
Ethereum Strategy: MicroStrategy 2.0?
Tom Lee said his belief in Ethereum comes from its central role in stablecoin infrastructure. With more than 50% of stablecoins operating on Ethereum and stablecoins accounting for nearly a third of transaction fees on the network, he predicts Ethereum will become a key payment layer for global finance.
If the stablecoin market reaches $2 trillion as estimated by the US Treasury, Ethereum fee revenue could increase tenfold. According to Lee, this puts Ethereum in a position similar to “ChatGPT for AI” to drive the boom.
BitMine is following MicroStrategy’s strategy with Bitcoin but applied to Ethereum. ETH purchases will be directly reflected in the ETH per share index, making the company’s stock an indirect vehicle for ETH exposure with capital market leverage.
Risk Assessment and Potential
With a market cap of around $397 million and EV/Revenue at over 80x, the current valuation reflects high market expectations. However, with new revenue of $6 million on track, this valuation does not reflect actual profits, but rather future expectations.
BitMine has not yet detailed its ETH acquisition roadmap or how it will implement its treasury strategy. However, the recent $250 million capital raise backed by big names such as Pantera, Galaxy Digital, DCG, Republic Digital, Kraken, Founders Fund, and Tom Lee himself shows great confidence from leading investment institutions.
Conclusion
BitMine is no longer just a mining company, it is reshaping itself as a strategic capital platform for Bitcoin and Ethereum. With its bold ETH buying strategy and the backing of leading funds, the company is emerging as a potential proxy for Ethereum in the equity market.
However, the long-term outlook still depends heavily on the transparent and effective execution of its treasury strategy. If successful, BitMine could be a pioneer in the wave of Ethereumization of corporate assets and the “new MicroStrategy” in the era of decentralized finance.