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Tom Lee urged Bitmain shareholders to approve a significant expansion in the number of authorized shares of the company, which will make future dilution easier as Bitmain doubles its focus on Ethereum as a primary treasury asset.
In his New Year’s message, Lee asked investors to support a proposal to raise the limit of authorized shares from 500 million to 50 billion shares. The voting process ends on January 14, before Bitmain’s annual meeting on January 15 in Las Vegas.
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BitMine stake cut controversy linked to Ethereum
Tom told me cruelly X site The increase does not mean that Bitmain will immediately issue all those shares.
He added that it will give the company flexibility to support future capital needs and will allow for a stock split if the stock price rises significantly.
Bitmain last year switched to make ETH its main treasury asset. Since then, the company has continuously increased its Ether holdings, positioning itself less as a traditional mining company and more as an Ethereum-based balance sheet.
The company only last month Bought over $1 billion worth of Ethereum.
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Lee informed shareholders that Bitmain’s stock is starting to follow the movement of ETH closer to the company’s operational indicators.
In his opinion, he sees that yes The price of Ethereum has risen quite a bit over timeIssuing new shares to buy more ETH can benefit shareholders, even if their ownership percentage decreases.
If the proposal passes before the January 15 shareholder meeting in Las Vegas, it will own Bitmain A much larger selection of stock to issue This can be used to:
- Increase capitalalso to buy more Ethereum
- Acquisitions Or strategic business
- Stock split To keep the stock price “available” as explained to me
Lee stressed to investors that approval of a larger warrant does not automatically trigger dilution. Actual dilution occurs only if and when new shares are issued.
He also explained that a stock split is a major reason for this proposal. If the price of Bitmain shares increases in parallel with the eth, it may be necessary to implement splits to preserve the access of retail investors to the shares. The higher number of authorized shares facilitates the implementation of these splits.
However, the proposal puts shareholders at a crossroads. A vote of approval does not reduce the stakes today, but lowers the barrier to future dilution directly related to exposure to Ethereum.
