Shares of Bitmine Immersion (BMN), an Ethereum-focused company, once fell nearly 10% at one point, which is believed to be caused by the company's announcement of the pricing for a $365.24 million registered direct offering and an update on its related asset holdings.

This company, which positions itself as the world's largest Ethereum (ETH) treasury, has revealed that it now holds over 2% of the total Ethereum token supply as it progresses toward its ambitious goal of achieving the "Alchemy of 5%."

Bitmine Immersion has finalized the terms of a Registered Direct Offering (RDO), raising approximately $365.24 million. The company will sell new shares to institutional investors at $70.00 per share, accompanied by warrants with an exercise price of $87.50, expiring on March 22, 2027. The offering is expected to close around September 23.

An RDO is a registered public offering, typically conducted under an existing shelf registration (like an S-3). It is sold directly to a limited number of institutional investors by a placement agent, usually on a "best efforts" basis. Unlike a traditional underwritten follow-on offering (which is a "firm commitment") or a PIPE (which is private and involves unregistered shares), the shares sold in an RDO are freely tradable immediately upon issuance.

The company has entered into a securities purchase agreement with an institutional investor for the sale of 5,217,715 shares of its common stock, with a par value of $0.0001 per share.

The offering price of $70.00 per share represents a premium of approximately 14% over the company's closing share price on September 19. The transaction also includes warrants to purchase up to an additional 10,435,430 shares at an exercise price of $87.50 per share. These warrants are exercisable immediately upon issuance and will expire on March 22, 2027. If exercised entirely for cash, these warrants could potentially generate total proceeds of up to approximately $913 million for the company in the future.

"By selling shares at $70 per share, compared to our $61.29 closing price, this is materially accretive to existing shareholders as the primary use of proceeds is to add to our ETH holdings," stated Thomas Lee, Chairman of Bitmine Immersion.

According to the company's statement, the offering is expected to close around September 23.

Separately, Bitmine Immersion reported that its total holdings of "BitMine crypto + cash + 'moonshots'" amounted to $114 billion as of 4:00 PM ET on September 21. This compares to a combined total of $108 billion in cryptocurrency, cash, and strategic investments reported on September 14.

The company's disclosed crypto asset holdings include 2,416,054 Ethereum (ETH); 192 Bitcoin (BTC); a $175 million stake in Eightco Holdings (ORBS), referred to as "moonshots"; and $345 million in unencumbered cash.

The cryptocurrency market faced a challenging start to the week, with a wave of heavy selling triggered by the forced liquidation of over $1.5 billion in leveraged long positions across the market. Data from crypto data platform Coinglass indicated that Ethereum, the second-largest cryptocurrency, saw nearly $500 million of its long leveraged positions liquidated, causing its price to plummet by up to 9% to a low of $4,075. Bitcoin fell nearly 3% to $111,998.

Firmly Executing a "MicroStrategy-style" Strategy

Encouraged by the company's aggressive accumulation of cryptocurrency, some investors are beginning to envision that Bitmine Immersion could replicate the model pioneered by Strategy (formerly MicroStrategy)—a "super bull market trajectory" where continuously increasing purchases of a specific cryptocurrency drive the company's stock price to soar in tandem with the rising digital asset.

This strategy follows the same paradigm as the buying strategy employed by Michael Saylor's Strategy: using the corporate balance sheet to directly hold crypto assets, aiming for valuation reassessment and asset appreciation. Strategy has even been dubbed by some analysts as "the most successful investment bank in human financial history," having gone from the brink of bankruptcy to achieving a market capitalization that once exceeded $100 billion, fueled by investor enthusiasm for its massive Bitcoin holdings. The company's current market cap significantly exceeds the value of its Bitcoin holdings, having experienced a parabolic stock price increase alongside Bitcoin's "super bull run" past $120,000 since 2024.

Bitmine Immersion is arguably the most prominent company to publicly transition from mining operations to an Ethereum treasury strategy. It raises capital primarily through private placements or direct offerings (like the latest $365.24 million registered direct offering at $70 per share with $87.50 warrants) and allocates the proceeds mainly to purchasing Ethereum. The company proclaims itself the "world's largest Ethereum treasury," having recently disclosed holdings of 2,416,054 ETH (exceeding 2% of the supply), and has set a target called the "Alchemy of 5%."

The underlying logic for Bitmine is to use its equity as a "fundraising engine" and treat Ethereum (ETH) as a "currency-like high-beta + functional asset." This strategy aims to amplify the sensitivity of its share price to ETH's price movements, betting on structural trends such as Ethereum scaling solutions, the acceleration of ETF adoption and institutional involvement, and the broader global trend of tokenizing real-world assets (RWA). While similar in concept to MicroStrategy's Bitcoin treasury approach, Ethereum's staking rewards potential and application layer could potentially offer excess alpha returns, but also introduce additional execution requirements and regulatory complexity.