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BitMine shares surged 40% thanks to the announcement of holding 500 million USD ETH
BitMine Immersion Technologies stock (BMNR) has increased by over 40% after the company revealed that it is holding 163,142 ETH worth approximately 500 million USD, double the 250 million USD raised in the private round on July 9.
This move is seen as a strategy to accumulate ETH similar to the way Strategy accumulates Bitcoin. Tom Lee from Fundstrat, who is behind BMNR's strategy, believes that the ETH Treasury could also become a "financial defensive position" just like Bitcoin.
The stock price increase comes after a 65% plunge last week due to a plan to issue shares worth 2 billion USD. Currently, BMNR shares are trading around 4.88 USD, down from 6.25 USD on July 10.
In total, ETH reserve funds — including the decentralized organization (DAO) and the listed company — are currently holding approximately 1.5 million ETH. Among them, the Bitcoin mining company BTC Digital has also just converted 1 million USD into ETH, calling it the "new digital gold."