Bitmine Immersion shares fell again as it announced a plan to raise $2 billion through new stock sales.
- Bitmine shares fell 20% after a second day of heavy losses.
- The company plans to raise $2 billion through an at-the-market stock sale.
- The drop follows a 3,000% surge tied to its Ethereum treasury strategy.
Stock Price Drops After Big Sale Announcement
Bitmine Immersion Technologies (BMNR) dropped another 20% on Thursday. This follows a 40% loss the day before. The company shared plans to raise as much as $2 billion by selling shares in the open market.
The stock offering will be handled by Cantor Fitzgerald and ThinkEquity. These two firms will sell Bitmine shares at different times, depending on market interest. The deal allows Bitmine to get funding without needing a full stock sale all at once.
Success Followed by Sharp Decline
Bitmine had recently exploded in value, rising over 3,000% after announcing a new strategy. The company said it would hold Ethereum (ETH) as a key part of its treasury plan. This led to huge interest from traders. It also appointed Tom Lee of Fundstrat as chairman, which boosted trust in the move.
But now some investors are worried. The fast rise in price is being followed by an equally quick fall. Experts say this pattern looks similar to what happened with Sharplink Gaming (SBET), another company tied to Ethereum. Sharplink’s stock jumped, then crashed 90% when early investors started selling.
Investors Show Caution
After reaching a high, Bitmine’s value is now down more than 65% from its peak. A recent $250 million funding round and the new offering may help the company in the long run. But in the short term, many investors are taking profits or stepping away due to the risk.
Market watchers will be keeping an eye on how Bitmine uses the new funds. Many will also watch other Ethereum-linked stocks, to see if more price swings appear.
Source: coindesk.com
