Investment Gems

BitMine ($BMNR) just dropped a bomb: they sold ~5.22M new shares at $70 (a 14% premium to Friday’s $61.29 close) and issued ~10.44M warrants at $87.50. Gross cash in the door is $365M now, with another $913M possible later if the warrants get exercised. Total potential raise: $1.28B.

On the surface, that sounds like dilution – and it is. Roughly 4.6% new shares now, and if all warrants eventually exercise, you’re looking at ~13–14% total dilution. But here’s the kicker: BMNR managed to raise this at a premium, not a discount. That almost never happens. It signals strong institutional demand (Moelis ran the deal) and keeps the “smart money backing” narrative alive.

So how does it play out for us?

In the short term, BMNR’s NAV/share math takes a small hit. With ETH around $4,632, every new share sold at $70 only buys ~0.015 ETH, while the company already had ~0.019 ETH/share on its balance sheet. That’s slightly dilutive if they deploy right away at current ETH prices.

But here’s where BMNR’s model matters: they now have $365M in dry powder. If ETH dips 10%, that cash buys way more ETH per new share, basically eliminating dilution and possibly turning the deal accretive. And don’t forget the warrants – if BMNR trades north of $87.50 and those get exercised, that’s another ~$913M they can plow into ETH, potentially adding ~197k ETH. Total treasury boost from this package could be ~276k ETH, taking them from ~2.15M to ~2.43M ETH.

The stock mechanics are straightforward

• In the near term, expect chop. New supply + warrant overhang weigh on the tape. Hedge funds will lean on BMNR since it’s the most liquid ETH proxy.
• The $87.50 strike now becomes a psychological line in the sand. If BMNR rips and holds above that, warrants exercise and another wave of ETH accumulation hits. That’s dilution, yes, but also more ETH per share if deployed smartly.
• If ETH sells off, BMNR can use the $365M to buy the dip. That’s the playbook that made MicroStrategy a monster in BTC – use equity at a premium to buy the underlying on weakness.

Big picture, this is on-script for BMNR’s “alchemy of 5% ETH” goal. They don’t sit back and wait; they issue at a premium, raise scale, and try to use volatility to their advantage. If they’re disciplined (buying dips, not tops), this raise accelerates their march toward being the ultimate ETH treasury + yield vehicle.

Bottom line: Don’t freak out at the dilution headline. This is exactly how BMNR is supposed to operate. What matters now is how and when they deploy the cash. If they stack ETH into weakness, this $365M could end up being one of the smartest deals they’ve pulled off yet.