BitMine Immersion Technologies chairman Tom Lee urged shareholders to approve a 100-fold increase in authorized shares ahead of the company's.
The Ethereum (ETH) treasury firm's board unanimously adopted a charter amendment on December 8 proposing to increase authorized common stock from 500 million to 50 billion shares.
BitMine shares climbed approximately 11% on January 2 following Lee's public statement addressing shareholder concerns.
The annual meeting is scheduled for January 15 at Wynn Las Vegas.
What Happened
Lee clarified the proposal does not mean BitMine will immediately issue 50 billion shares.
"This doesn't mean we're issuing 50 billion shares. That's what we want the total max shares to be," Lee stated.
The chairman outlined three rationales for the authorization increase.
First, it enables capital markets activities including at-the-market offerings, convertibles, and warrants.
Second, it provides flexibility for opportunistic transactions including potential mergers or acquisitions.
Third, it allows the company to implement future stock splits as its share price tracks Ethereum's movements.
BitMine pivoted in July 2025 to make Ethereum its primary treasury asset.
The company currently holds approximately 4.11 million ETH tokens.
Shareholders must vote by January 14 at 11:59 PM ET.
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Why It Matters
The authorization increase addresses a practical constraint: BitMine cannot split shares without expanding its authorized share count ceiling.
Lee argues the company's stock price tracks Ethereum movements with a Bloomberg-calculated coefficient, necessitating splits to keep shares "accessible" if ETH appreciates significantly.
The proposal has raised dilution concerns among shareholders despite Lee's assurances about immediate issuance.
BitMine's stock has risen 86% since adopting its Ethereum treasury strategy on June 30.
Higher authorized share counts do not automatically issue new stock but simplify future fundraising and stock-based transactions.
Institutional investors supporting BitMine include ARK Invest, Founders Fund, Pantera, and Galaxy Digital.
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