BitMine Immersion Technologies announced it would launch an Ethereum treasury, employing well-known Wall Street trader Tom Lee to head the project as chairman. BitMine stocks jumped 400% after the news broke. The company announced that $250 million would be invested in a private placement to fund the Ethereum treasury. Tom Lee is mainly known for his work with the company Fundstrat. An essential aspect of creating a crypto strategy is to have a leader who is confident in the project and able to maintain the funds through good times and bad. It also helps to have someone with leadership abilities to reassure shareholders that the treasury strategy is profitable in the long run. BitMine has employed well-known crypto figures to bring their experience to the company. BitMine announced the treasury strategy and wanted to create the largest Ethereum treasury. To procure $250 million in funds, the private placement would be priced at $4.50 per share with 55,555,556 shares, closing on July 3. The placement is still waiting for regulatory bodies to approve the investment. BitMine announced that the new strategy would add to their pre-existing Ethereum strategy. They will hold more ETH and engage in activities related to the Ethereum ecosystem. The company will collaborate with Kraken exchange and FalconX to deliver the strategy. The newly appointed chairman, Tom Lee , said this was an example of crypto fusing with traditional finance. Ethereum was chosen by BitMine because, according to the company, ETH currently leads in stablecoin payments, has the largest amount of tokenized assets, and dominates the DeFi market. This should not be surprising because Ethereum is the second-largest crypto in market capitalization. BitMine wishes to use the staking tools available in Ethereum and Decentralised Finance (DeFi) applications to enhance its treasury strategy. Tom Lee will further join the board of directors. Lee is a Wall Street trader who is bullish on crypto markets. BitMine will use an ether-per-share metric to measure the company’s performance in terms of its newly acquired strategy. ETH spot ETFs saw 106,000 ETH net inflows last week, adding to an institutional surge of Ethereum investment, fuelled in part by optimism after the price of ETH jumped to $2,500. There has also been confidence in crypto markets after Bitcoin reached $107,000 again and even hit $108,000. However, some traders see the double hit of $107k as a sign that the market has hit a double top and is due for a significant price drop. Ethereum, meanwhile, has been a preferred blockchain for companies that implement DeFi applications. Tom Lee, the newly appointed chairman of BitMine, noticed positive patterns in Ethereum’s price that indicate a price rise. Lee was referring to technical analysis methods that may include candlestick formations. Lee believes that the increase in Ethereum’s price will be despised by many traders who expect the price to drop. Lee argues that the price rise will be due to institutional adoption of ETH and long-term market structures that are propelling the blockchain further. Tom Lee, newly appointed chairman of BitMine, believes that the stablecoin market will rise from $250 billion in valuation to $2 trillion. One of the reasons why Lee prefers Ethereum for a treasury is that he believes the ecosystem of ETH dominates the stablecoin market. Therefore, Lee believes that Ethereum will benefit from the stablecoin market forecast. He sees in Ethereum a potential for traditional markets to merge with blockchain technologies. Ethereum does have a myriad of uses for corporate applications. Many institutions prefer Ethereum because they can easily create blockchains within the ecosystem and create DeFi applications. The stock market reacted strongly to BitMine’s announcement, jumping from bearish to bullish valuations within one day.
