Key Takeaways
- Peter Thiel’s Founders Fund fund purchased over 5 million shares during a $250 million private placement in BitMine.
- BitMine now holds over 163,000 ETH, valued at more than half a billion dollars.
- The firm’s Ethereum treasury initiative has significantly impacted its stock price, which surged from $40 to $59 in a single day.
Billionaire venture capitalist Peter Thiel has purchased over 9% of crypto mining provider BitMine, bringing his total ownership to 5.09 million shares in the firm.
The move comes after BitMine announced it now holds over $500 million worth of ETH, following the closing of its initial private placement of $250 million on July 9.
Peter Thiel and BitMine
On Tuesday, according to a filing with the U.S. Securities and Exchange Commission, Thiel and his Founders Fund disclosed that they had acquired a 9.1% stake in BitMine.
The purchase follows reports in June the fund had invested in BitMine.
According to the SEC filing, the firm acquired over five million shares.
The private placement saw BitMine sell over 55 million shares at $4.50 each, with the proceeds going toward Ethereum reserves.
Kraken, Pantera Capital, and Galaxy Digital were among the other firms that also participated in June.
BitMine’s ETH Bet
On Monday, BitMine announced it holds over half a billion dollars’ worth of Ether in its treasury.
The firm stated it holds over 163,000 ETH in its reserves, purchased at an average price of $3,072 per token.
The launch of BitMine’s Ethereum treasury strategy has caused BitMine’s stock price to fluctuate dramatically, ranging from lows of $4 to highs of over $130.
BitMine’s stock rose to $59 on Monday, representing a 45% increase from Friday’s price of $40.
Ethereum Treasuries on the Rise
A new wave of publicly traded companies are shifting their corporate Bitcoin strategies toward Ethereum, as firms increasingly look to take advantage of its smart-contract capabilities.
On July 7, digital asset firm Bit Digital announced a strategic move to Ethereum, stating that ETH would “rewrite the entire financial system.”
The company used funds from the sale of 280 Bitcoin, along with proceeds from a recent public offering, to acquire over 100,000 ETH.
“As of today, Bit Digital has accumulated over 100,000 ETH,” the company wrote in a statement.
“But we are not new to Ethereum, nor to our conviction in its opportunity,” they added.
SharpLink Gaming, led by Ethereum co-founder Joe Lubin, now also holds over 255,000 ETH, making it the largest corporate Ethereum treasury to date.
Kurt Robson is a London-based reporter at CCN, specialising in the fast-moving worlds of crypto and emerging technology. He began his career covering local news in Cornwall after graduating from Falmouth University with First Class Honours in Journalism. There, he cut his teeth on everything from council meetings to missing swans.
He quickly rose through the ranks to become a frontline journalist at several of the UK’s leading national newspapers. Over the years, he has interviewed musicians and celebrities, reported from courtrooms and crime scenes, and secured multiple front-page exclusives.
Following the upheaval of the COVID-19 pandemic, Kurt shifted his focus to technology journalism—just ahead of the AI boom. With a natural curiosity and a trained eye for emerging trends, he has found a new rhythm in reporting on innovation.
At CCN, Kurt's work focuses on the cutting edge of crypto, blockchain, AI, and the evolving digital world. Drawing on his background in people-first reporting and his deep interest in disruptive tech, Kurt delivers stories that are insightful, entertaining, and human-centric.
