Ethereum Treasury Company announces increased authorized capital, aiming for ETH price directly targeting $250,000

【Blockchain Rhythm】BitMine Chairman Tom Lee recently explained on social media why the company needs to increase authorized share capital. In simple terms, there are three considerations behind this: first, to leave flexibility for subsequent financing and ATM issuance; second, to facilitate seizing strategic mergers and acquisitions opportunities; and third—and most importantly—to prepare for future stock splits.

Speaking of stock splits, there’s an interesting logic here. According to Tom Lee’s vision, as Ethereum is gradually validated as the future of finance, he envisions a long-term target exchange rate of 0.25 for ETH and BTC (the specific meaning of this rate is worth careful consideration). Assuming ETH really surges to $250,000, BitMine’s stock BMNR would also rise accordingly, potentially reaching $5,000. But such a price point is too high for ordinary retail investors; no one wants to spend $5,000 to buy a single share. Therefore, the company’s plan is to split the stock to bring the share price back to a “friendly” level of around $25, allowing more investors to participate conveniently.

This stock split operation will directly increase the circulating share capital, which in turn requires the total authorized share capital to be increased accordingly to support it. In other words, if BitMine wants to smoothly execute future stock splits, it must proactively increase its “ammunition” in the authorized share capital now.

The market seems to be quite receptive to this logic. By the close on Friday, BMNR’s stock price rose to $31.19, with a single-day increase of 14.88%. This upward trend, to some extent, reflects investors’ optimistic expectations for the company’s long-term prospects.