Shares of Bitmine Immersion Technologies (BMNR), the ether (ETH) treasury strategy firm led by Fundstrat’s Thomas Lee, saw a notable decline of 20% on Thursday. This downward trend follows a staggering 40% drop the previous day, as the company unveiled intentions to raise up to $2 billion through a stock sale agreement.
This selloff follows Bitmine’s successful closure of a $250 million funding round and the announcement of an at-the-market (ATM) stock offering deal with Cantor Fitzgerald and ThinkEquity. As reported in a Wednesday SEC filing, Cantor will take on the role of lead agent, allowing for the sale of shares directly into the market at the company’s discretion over time.
The recent decline is particularly striking given Bitmine’s remarkable surge of 3,000% following the announcement of its Ethereum-focused treasury strategy and the appointment of Tom Lee as chairman of the board. However, caution is warranted, as highlighted in a recent CoinDesk report which indicated potential parallels with Sharplink Gaming (SBET). This stock also experienced a meteoric rise, followed by a dramatic plunge of 90% when early investors began offloading shares.
In light of this volatility, BMNR has experienced a significant decrease of 65% since the report. Stakeholders should remain vigilant and consider the lessons learned from historical stock movements within the cryptocurrency domain.
Read more: Tom Lee’s Bitmine Surges 3,000% Since ETH Treasury Strategy, but Sharplink’s Plunge Warrants Caution
