cryptopolitan.com
Bitmine Immersion Technologies Inc. has reached a four-year price peak, doubling its price in the past two days. The company has unlocked a 3,000% rally after announcing its $250M facility to build an ETH treasury.
Bitmine was one of the latest treasury companies to unlock a stock rally. In the past two days alone, Bitmine rallied by more than 100%, reaching a price of $135 for the first time since April 2021.
The latest stock rally launched after Bitmine announced a $250M private placement with the goal of acquiring and holding ETH. The price jumped additionally after the closing of the private placement on July 3.
Bitmine started out from all-time lows, rising from a $1 mining stock to over $135 in the span of a week. Bitmine continues to rally as the leader to the pack of Ethereum treasury stocks, which joined the Bitcoin trend in the past few weeks.
The growth trend also boosted the shares of Sharplink Gaming, rising further from $9.50 to over $12.60. SBET share prices are still down from their peak, but the recent recovery shows enthusiasm for ETH treasuries remains high. BitDigital, Inc. also rose to a one-month high of $2.94.
ETH treasuries also allow companies to stake the tokens for additional passive income. Sharplink Gaming has already staked 95% of its ETH valued at over $450M.
Bitmine plans dual BTC-ETH strategy
Bitmine already holds 154.2 BTC, acquired at prices above $106,000 since June 16. The company has also hidden hashrate that would produce additional BTC inflows in the coming six months.
Bitmine aims to use its private placement proceeds, along with BTC, to acquire more ETH and build its treasury. The company aims to acquire crypto for long-term holding, from a mix of BTC mining operations or from raising additional capital.
Bitmine has direct mining operations, contracts in synthetic market, and hashrate as a financial product. Bitmine also works as a mining consultant, while also owning data centers in low-cost locations in Texas.
Can Bitmine reawaken ETH?
Demand for ETH has risen, based on ETF buying. The recent announcement of corporate treasuries is still not making a dent on the market. ETH remains a speculatively traded asset, with deliberate trading against long positions, leading to a depressed market price trading within a range around $2,500.
ETH traded at $2,557.21, far from the exuberance of treasury company shares. The token stalled just under $2,700, falling on selling pressure.
For bullish traders, ETH was supposed to make a hike to $3,000, though for now the rallies are cut short. Ethereum has seen increased staking and on-chain activity, with growing demand for DeFi. The network is slowly regaining its activity, mostly based on stablecoin usage. USDT and USDC drive traffic on Ethereum, as part of both centralized and decentralized activity.
The recent treasuries are still not buying at the scale of Strategy, which is already affecting the BTC market. However, the appearance of a new wave of altcoin treasury companies may extend the 2025 crypto rally. Companies have already announced SOL and BNB treasuries, but ETH may be a prime candidate for reserves with guaranteed staking rewards.