BitMine chairman Tom Lee has proposed a dramatic increase in the company’s authorized share count, arguing that the move is necessary to support future growth as Ether potentially drives the firm’s valuation significantly higher. The proposal would raise BitMine’s authorized shares from 50 million to 50 billion, a 1,000x increase that has sparked debate among investors and the crypto community.
Lee emphasized that the proposal does not mean the company plans to immediately issue tens of billions of new shares. Instead, it would provide flexibility for future stock splits and strategic capital raises if BitMine’s share price climbs to levels that could discourage retail participation.
Why BitMine Wants to Increase Authorized Shares
According to Lee, BitMine’s share price closely tracks the price of Ether (ETH), reflecting the company’s shift to an ETH treasury strategy in 2025. While BitMine still maintains some Bitcoin mining operations, its valuation is now largely influenced by Ethereum’s market performance.
Lee modeled potential future scenarios using the ETH-to-Bitcoin ratio. In one bullish outlook, he suggested ETH could reach $250,000 if Bitcoin were to climb to $1 million. Under that scenario, BitMine’s shares could reach an implied price of around $5,000 per share, making them inaccessible to many retail investors.
To keep shares affordable, Lee said BitMine would likely need to execute a large stock split—potentially 100:1—to bring the price back to a more attractive level near $25 per share. Such a split would require tens of billions of shares to be authorized, which is why the company is seeking approval now.
Investor Concerns and ETH Treasury Expansion
Despite Lee’s explanation, the proposal has faced strong criticism on social media. Many investors argue that increasing the authorized share limit could lead to dilution, especially while the stock price remains under pressure. Some commenters questioned the timing of the move and suggested it could undermine shareholder confidence.
Lee responded by pointing out that authorized shares represent a maximum limit, not an immediate issuance. He also framed the controversy as an example of “unit bias,” a behavioral finance concept where investors focus on the number of shares they own rather than overall value, returns, or risk.
Meanwhile, BitMine continues to expand its Ethereum holdings aggressively. The company recently purchased nearly $100 million worth of ETH, bringing its total treasury to more than 4 million ETH, valued at over $12 billion. BitMine has also begun staking its ETH to earn yield, further reinforcing its long-term commitment to Ethereum as a core treasury asset.
As shareholders prepare to vote, the proposal highlights the growing intersection between traditional equity markets and crypto-based treasury strategies, along with the challenges of balancing growth, accessibility, and dilution concerns.
