Why Shares of Bitmine Immersion Technologies Are Skyrocketing Today

The stock continued its impressive run this week after the company announced yesterday that it would pursue an Ethereum treasury strategy

Ing Strategy's playbook Bitmine announced yesterday that it had raised $250 million in a private placement offering that it will use to purchase Ethereum, ing a similar strategy initially implemented by Strategy (formerly MicroStrategy) with Bitcoin

The transaction was led by MOZAYYX and also included participation from the Founders Fund, Pantera, FalconX, Republic Digital, Kraken, Galaxy Digital, DCG, Diametric Capital, Occam Crest Management, and Thomas Lee, the founder of Fundstrat and a contributor on CNBC

Image source: Getty Images

Bitmine also announced that Lee is now chairman of Bitmine's board of directors

Lee is an influential Wall Street strategist and has become famous for his bullish calls on the stock market over the last few years

Lee and Fundstrat are also big fans of Bitcoin

On CNBC yesterday, Lee said Ethereum could essentially become the next Bitcoin, primarily because of its importance to the burgeoning stablecoin, which many experts including U

Treasury Secretary Scott Bessent believe is poised for massive growth

A significant portion of fees generated on Ethereum's blockchain already come from stablecoins

While I am long-term bullish on Ethereum and understand Lee's argument for the world's second-largest cryptocurrency, I find these crypto-treasury vehicles too risky and volatile for retail investors

If you Ethereum, simply buy Ethereum

Bram Berkowitz has positions in Bitcoin and Ethereum

The Motley Fool has positions in and recommends Bitcoin and Ethereum

The Motley Fool has a disclosure policy.