Rich by Coin

BitMine’s plan to dramatically raise the number of authorized shares has faced mounting opposition from shareholders, even as the company cements its stance on Ethereum as the core of its treasury. Tom Lee argues that the move is not about immediate dilution but about long-term flexibility, though many investors question the structure, timing, and incentives. One major critique centers on timing. Lee has said he would consider a future stock split when Ethereum prices surge dramatically, justifying today’s issuance, and investors note that roughly 426 million of the 500 million-share cap has already been issued.

The second concern focuses on guardrails. The issuance-limit scale—from 500 million to 50 billion shares—is itself surprising. Even to meet a 5% ETH allocation target, only a portion may need to be issued. Analysts questioned whether 50 billion shares are really necessary, calling the request an “overwhelming blank check” that could remove the need for future shareholder approvals and governance checks. The third concern relates to Ethereum growth and shareholder value, with management incentives contested as the proposal ties Tom Lee’s compensation to total ETH holdings rather than ETH per share.

Fourth, fears about issuing below NAV; BitMine’s stock has not traded at a NAV premium, intensifying dilution concerns. Critics argue that broad issuance authority reduces the barrier to issuing new shares below NAV, permanently diminishing the ETH per-share holding. A critic stated that issuing new shares below NAV would permanently decrease the ETH per-share allocation. Fifth, questions about spot ETH; some investors prefer simply owning ETH outright, while others warn that the proposal could open a path to dilution through ATM-style mechanisms. Despite the objections, many dissenting holders remain bullish on ETH and BitMine’s broader strategy, seeking clearer protections before granting management a blank check over a highly volatile asset.