Bitmine’s Meteoric Rise Linked to ETH Holdings, Though Sharplink’s Slump Highlights Volatility

Sharplink Gaming recently delivered a stunning performance, skyrocketing by 4,000% after unveiling a $450 million fundraising initiative—only to crash by 90% in the weeks that followed, illustrating the high volatility of crypto-linked stocks.

Now, Bitmine Immersion (BMNR), under the leadership of Fundstrat’s Thomas Lee, has become the latest focus of investor frenzy. The firm’s shares more than doubled on Thursday, reaching over $140, and have surged more than 3,000% within a week following the announcement of plans to raise $250 million through a private share sale to purchase ether (ETH).

The offering, priced at $4.50 per share and closing today, has attracted heavyweight institutional investors, including Founders Fund, Pantera, FalconX, Kraken, Galaxy Digital, and Digital Currency Group (DCG).

Bitmine is positioning itself as a publicly traded vehicle for gaining exposure to ether—similar to how MicroStrategy (MSTR) became known as a leveraged bet on bitcoin. Such strategies have gained popularity as investors seek new ways to access crypto markets through listed companies.

Before this strategic shift, Bitmine’s core business centered on crypto mining operations using immersion cooling technology, and it already held $16 million worth of bitcoin.

A Lesson from Sharplink’s Volatility

Bitmine’s rapid rise closely resembles Sharplink’s dramatic trajectory. Sharplink, led by Consensys co-founder Joseph Lubin, pivoted into an ETH treasury model last month, prompting its stock to surge 4,000% after announcing its $450 million capital raise. However, the excitement proved short-lived: after securing its ETH holdings, the stock plummeted more than 90% as early private investors took profits and sold off shares.

Bitmine’s valuation now exceeds $800 million, with projections suggesting it could approach $7 billion once all newly issued shares are factored in, reflecting high market expectations for its ETH holdings.

Given this context, retail investors considering Bitmine should tread carefully, as past examples show how quickly such explosive rallies can reverse.