The proposal is framed as a structural move to preserve flexibility, not an immediate plan to issue new shares.
BitMine Immersion Technologies is asking shareholders to approve a massive increase in its authorized shares.
The company’s leadership, led by Chairman Tom Lee, has explained that this strategic move is designed to enable future stock splits, a necessity they believe will arise as the firm’s share price climbs in tandem with its primary treasury asset: Ethereum (ETH).
Shareholder Vote Focuses on Future Flexibility
In a series of posts on January 2, Lee directly addressed investor questions regarding Proposal 2, which seeks to raise BitMine’s authorized common stock from 500 million to 50 billion shares, with a shareholder vote on the measure due by January 14.
The crypto entrepreneur was quick to dismiss concerns that the proposal signals immediate shareholder dilution. Instead, he outlined three strategic reasons for the change, which are facilitating selective capital raises, enabling opportunistic mergers, and accommodating future share splits.
“The last point is key,” Lee wrote. “Any time a company splits shares, total authorized needs to be high enough to accommodate.”
This plan is intrinsically linked to BitMine’s mid-2025 pivot to holding Ethereum as its main treasury asset. According to Lee, the company’s stock price now closely tracks the price of ETH.
It has aggressively built its position, with its latest purchase of the asset being a $97.6 million splurge on 32,938 ETH on December 31, 2025, bringing its total holdings to about 4.07 million ETH, valued at approximately $12 billion.
Ethereum’s Potential and the Path to Splits
Lee’s vision for BitMine is predicated on a bullish long-term outlook for Ethereum itself. He cited institutional belief in tokenization, echoing statements from leaders like BlackRock’s Larry Fink, and argued that most of this activity will occur on the Ethereum network.
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He projects the world’s second-largest cryptocurrency by market cap could eventually hit prices of $22,000, $62,000, or even $250,000 in a scenario where Bitcoin reaches $1 million.
Using BitMine’s established price correlation with ETH, Lee provided illustrative calculations for where the company’s stock could trade. These scenarios suggest share prices of $500, $1,500, or $5,000.
To keep shares accessible to retail investors, the 56-year-old stated the company would want to split its stock to reset the price near $25. Such splits would drastically increase the number of shares outstanding, necessitating the proposed boost in authorized shares.
This forward-looking strategy is coming at a time when Ethereum is weathering a difficult period. Data shows 2025 was ETH’s worst year since 2018, with nine monthly losses contributing to a 12% annual decline.
The asset is currently trading slightly above $3,000, showing a 3.5% increase in the last 24 hours but remaining 39% below its all-time high set in August 2025. Nonetheless, Lee and BitMine are positioning for a future they believe will be defined by Ethereum’s role in finance, building their treasury through the downturn in preparation for an anticipated rebound.
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