BitMine Immersion Technologies (BMNR 0.24%) stock posted another day of explosive gains in Thursday's trading -- ending the session up 130.8%. The company's share price is up roughly 2,450% over the last week.
News that Wall Street strategist Tom Lee is joining Bitmine in a push to make Ethereum's Ether token central to Bitmine's crypto holdings has helped kick off a massive rally for the stock. In conjunction with the company naming Lee as chairman of its board of directors, the company announced that it was raising $250 million in a private funding round.
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BitMine's massive rally continues
BitMine stock began rocketing higher Monday after Tom Lee's board appointment and the massive funding news hit the wire. Lee is the leader of Fundstrat, an investing research firm, and he's been a prominent long-term bullish champion for Bitcoin and other cryptocurrencies. He's scored some big wins with his calls, and his name carries a lot of weight in the crypto space.
By selling shares of its stock through a private listing, BitMine will raise $250 million in funding. The capital that it raises through the stock sale will be used with the goal of turning the company into one of the largest publicly traded Ethereum investment companies. The development comes amid rising interest in stablecoins running on the Ethereum network.
What's next for BitMine?
Tom Lee has an impressive pedigree in cryptocurrency investment, and having him head up BitMine's board of directors will likely open up some big opportunities and help secure additional funding. BitMine will likely continue to sell stock in order to build up its Ethereum holdings, seemingly aiming to do with Ethereum what Strategy has done with Bitcoin.
If Ethereum's value continues to rise, this can help BitMine to issue more stock -- potentially creating a cycle that still supports huge gains for its share price. If Ethereum continues to rise over the long term, this type of strategy can have big payoffs -- but there's also big downside risk if the token's valuation falters.
