Skip to main content

Peter Thiel Buys 9% Stake in Tom Lee's Ether Firm Bitmine; Shares Surge 22%

Image
By

 

Peter Thiel Buys 9% Stake in Tom Lee's Ether Firm Bitmine; Shares Surge 22%

Key Takeaways

  • Peter Thiel’s Founders Fund acquired a 9.1% stake in Bitmine Immersion Technologies (BMNR), triggering a 20-30% stock surge .
  • Bitmine holds 163,142+ ETH (worth ~$500M) and aims to be the "MicroStrategy of Ethereum" under Tom Lee’s leadership .
  • ETH’s price rose 9% daily (23% weekly) amid growing corporate treasury adoption, outpacing Bitcoin’s gains .
  • Rivals like SharpLink Gaming and Bit Digital also rallied 13-25% on ETH treasury momentum .
  • Catalysts include stablecoin legislation progress (GENIUS Act) and Robinhood’s tokenized stock trading launch in Europe .

Peter Thiel’s Big Bet on Ethereum

Tech billionaire Peter Thiel just shook up the crypto markets with a single SEC filing. His venture firm, Founders Fund, scooped up a 9.1% stake in Bitmine Immersion Technologies—that’s 5.09 million shares—making him the company’s largest investor . For Thiel, this ain’t his first crypto rodeo. Founders Fund been buying Bitcoin and Ethereum since 2014, even exiting a position in 2022 before jumping back in with $200 million last year . Now, his move into Bitmine signals something bigger: institutional players ain’t just dabbling in ETH anymore; they’re building strategies around it.

The market reacted fast. Bitmine’s stock (BMNR) shot up 25% to $48 shortly after the news broke, adding to its insane 900% rally since June when Tom Lee joined and the ETH pivot was announced . But here’s what’s wild: just last month, BMNR was trading at $4. Today it’s flirting with $50. That kind of growth makes even AI stocks look sleepy .

Inside Bitmine’s Ethereum Treasure Chest

Bitmine ain’t playing small. In under a month, they amassed 163,142 ETH worth over $500 million** . That’s more than double the $250 million they raised in a private placement just days earlier . How’d they buy so quick? CEO Jonathan Bates credits “Wall Street getting ETH-pilled” .

The strategy’s straight outta MicroStrategy’s playbook: use capital markets, cash flow, and asset appreciation to grow ETH-per-share value . But Bitmine’s targeting Ethereum specifically because of its role in stablecoins and tokenized assets. Tom Lee put it bluntly: “Underneath the stablecoin industry is Ethereum—that’s the backbone” . With Circle’s IPO heating up stablecoin buzz and Robinhood launching tokenized stocks in Europe, ETH’s utility is front and center .

Market Frenzy: ETH and Rivals Soar

Thiel’s stake didn’t just lift Bitmine—it lit a fire under the whole ETH ecosystem. Check the numbers:

  • Ether’s price jumped 9% in 24 hours and 23% weekly .
  • Bitcoin only managed 9.6% over the same week .
  • SharpLink Gaming (SBET): Up 17% (Joe Lubin, Ethereum co-founder, chairs their board) .
  • Bit Digital (BTBT): Gained 11% after ditching Bitcoin mining for ETH staking .
  • BTCS: Surged 25% after joining Russel Microcap index .

Table: ETH Treasury Companies Performance (July 16, 2025)

Crypto Companies Overview table lists Bitmine with 25% stock gain and 163,142 ETH, SharpLink with 17% gain and undisclosed ETH, Bit Digital with 11% gain, transitioning.

This ain’t just hype. ETH’s doubling in price over 3 months shows institutions see real value beyond Bitcoin’s “digital gold” narrative .

Tom Lee’s Vision: The “ETH MicroStrategy”

When Fundstrat’s Tom Lee took Bitmine’s helm in June, he had one goal: make it the definitive ETH treasury play . Lee’s no crypto cheerleader—he’s a Wall Street vet with a sharp eye for macro trends. He bet big on stablecoins as crypto’s “ChatGPT moment,” arguing they’ll bridge TradFi and DeFi .

His plan’s simple but gutsy:

  1. Ditch Bitmine’s low-margin Bitcoin mining ops .
  2. Raise capital ($250M private placement) .
  3. Aggressively accumulate ETH below $3,100 .
  4. Track ETH-per-share like MicroStrategy’s “BTC Yield” .

It worked. Bitmine’s market cap ballooned from $26 million to $2 billion in weeks . Now, with Thiel backing them, they got the firepower to buy even more dips.

Why Corporations Are Piling Into ETH

MicroStrategy’s Bitcoin hoard got headlines, but Ethereum’s pulling companies now for practical reasons:

  • Stablecoin pipelines: 90% of stablecoins like USDC live on Ethereum .
  • Tokenized assets: Robinhood’s European tokenized stock trading runs on ETH .
  • Staking rewards: Firms earn 3-5% annually staking ETH .
  • Regulatory tailwinds: The GENIUS Act could legitimize stablecoins, boosting ETH demand .

SharpLink Gaming and Bit Digital ain’t alone. Even BlackRock tokenized money market funds on Ethereum this year. For corporations, ETH’s not just a bet on price—it’s infrastructure .

Legislative Fuel: Stablecoins and Tokenization

Politics is pushing ETH into the spotlight. Two big catalysts:

  1. Circle’s IPO: Showed stablecoins can be profitable, regulated businesses .
  2. GENIUS Act: A Senate bill clarifying stablecoin rules, potentially easing bank integration .

When Circle went public, it proved stablecoins ain’t a niche crypto toy—they’re a $130B+ market with Visa and banks using them daily . And with Robinhood launching tokenized stocks in Europe, Ethereum’s becoming the go-to settlement layer for real-world assets . That’s why Tom Lee’s betting ETH’s “backbone” role will keep demand surging .

MicroStrategy’s Blueprint, Ethereum’s Twist

MicroStrategy (now Strategy) owns 600,000+ Bitcoin. Bitmine’s copying that playbook—but with key twists:

  • Faster accumulation: 163,000 ETH in <30 days vs. MicroStrategy’s years-long BTC buildup .
  • Lower entry: ETH’s $3,300 price lets smaller firms play .
  • Yield generation: Staking ETH earns income—Bitcoin just sits there .

Bitmine’s average ETH cost? $3,072.67 . With ETH near $3,500, they’re already sitting on ~13% unrealized gains. That’s why Thiel jumped in now: he’s not just betting on ETH’s price, but on Bitmine’s leverage to it .

What’s Next: ETH’s Institutional Surge

Thiel’s stake is a lighthouse moment. It tells traditional funds: ETH is investable. We’ll likely see:

  • More small-caps adding ETH to balance sheets (SharpLink, Bit Digital already are) .
  • Bigger players like Pantera and Galaxy Digital (who joined Bitmine’s private placement) doubling down .
  • ETH flipping Bitcoin in corporate treasury allocations by 2026.

But risks? Plenty. Regulatory hiccups, ETH’s tech upgrades (like Proto-Danksharding), or a crypto winter could shake things. Still, with Thiel and Lee aligned, Bitmine’s positioned to ride Ethereum’s next wave—whether it’s a splash or a tsunami .

FAQs

Q: How much ETH does Bitmine own?
A: 163,142 ETH worth ~$500 million as of July 14, 2025 .

Q: Why did Peter Thiel invest now?
A: Likely timing the ETH corporate treasury trend and stablecoin regulatory progress. Bitmine’s low entry price ($3,072.67 per ETH) also helped .

Q: What’s Tom Lee’s role at Bitmine?
A: As Chairman, he’s architecting their ETH accumulation strategy, mirroring MicroStrategy’s Bitcoin approach .

Q: How high could Bitmine’s stock go?
A: Unclear—but it’s already surged 900%+ since June. Analysts watch ETH price and Bitmine’s per-share ETH holdings .

Q: Are other firms copying this strategy?
A: Yes. SharpLink Gaming (chaired by Ethereum’s Joe Lubin) and Bit Digital are pursuing similar ETH treasury plans .

Comments

Post a Comment

Popular posts from this blog

Block Stock Soars 10% on S&P 500 Entry, Replaces Hess Effective July 23, 2025

By
  Key Takeaways S&P 500 Entry : Block (formerly Square) joins the S&P 500 on  July 23, 2025 , replacing Hess after its acquisition by Chevron . Market Reaction : Block’s stock surged  >10%  post-announcement as funds rebalanced portfolios to include it . Challenges Persist : Despite the boost, Block’s 2025 performance remains  down 14%  YTD due to weak Q1 results and tariff-related macro concerns . Strategic Significance : Entry validates Block’s pivot to blockchain/fintech and accelerates crypto’s mainstream adoption . Next Catalyst : Q2 earnings on  August 7  will test whether S&P-driven demand offsets economic headwinds . The Big News: Block Is Joining the S&P 500 Come July 23rd, Block—y’know, the company behind Square and Cash App—steps into the S&P 500. They’re takin’ Hess’s spot, which is exitin’ after Chevron wrapped up that $54 billion buyout. Hess had some juicy oil assets down in Guyana, but Chevron finally closed ...
Post a Comment
Read more

Cloudflare 1.1.1.1 Outage Report (July 14, 2025): Global DNS Disruption Root Cause Analysis

By
  Key takeaways Global DNS outage : Cloudflare's 1.1.1.1 resolver failed worldwide for  62 minutes  on July 14, 2025, due to a configuration error in their service topology . Root cause : A dormant misconfiguration from June 6 linked 1.1.1.1 to a non-production service. When activated, it withdrew critical IP prefixes globally . Traffic impact : UDP/TCP/DoT queries dropped sharply, but  DNS-over-HTTPS (DoH)  via  cloudflare-dns.com  stayed stable thanks to separate IPs . Unrelated hijack : Tata Communications (AS4755) advertised 1.1.1.0/24 during the outage, worsening routing issues for some users . Resolution : Cloudflare restored services by 22:54 UTC after reverting configurations and manually re-announcing routes . Why 1.1.1.1 matters for the internet You might not think much about DNS resolvers, but they’re like the phonebooks of the internet. Cloudflare’s 1.1.1.1 launched back in 2018 as a faster, privacy-focused alternative to ISP-provided DNS. ...
Post a Comment
Read more

Scale AI Layoffs: 200 Employees Cut as Company Admits GenAI Over-Expansion

By
  Key Takeaways Scale AI cut 200 employees (14% of staff) and 500 contractors  weeks after Meta invested $14.3 billion for a 49% stake in the company . Founder Alexandr Wang left to lead Meta’s new AI division , prompting interim CEO Jason Droege to restructure teams citing "excessive bureaucracy" and over-hiring in generative AI . Major clients like Google and OpenAI reduced work with Scale AI  following the Meta deal, triggering revenue concerns . Restructuring consolidates 16 specialized teams into 5 core units  (code, languages, experts, experimental, audio) to prioritize enterprise and government contracts . The layoffs highlight industry-wide pressure  as AI firms face scrutiny over costs, productivity gains, and business sustainability . What Actually Went Down at Scale AI? Scale AI just laid off 200 full-time employees. That’s 14% of their workforce. Plus, they cut ties with 500 contractors globally. The news hit on July 16, 2025, barely a month after Me...
Post a Comment
Read more

High-fructose corn syrup vs. cane sugar in foods: The cost of switching ingredients

By
  Key Takeaways Coca-Cola's potential switch  to cane sugar follows political pressure but faces  economic hurdles  . Price disparity : High-fructose corn syrup costs  $0.35/lb  vs. cane sugar at  $1.01/lb —nearly triple. Farm impact : Eliminating corn syrup could wipe out  $5.1B in U.S. farm revenue  . Health equivalence : The FDA states  no nutritional difference  exists between the sweeteners . Consumer cost : Mexican Coke (cane sugar) costs  over 60% more  than U.S. corn-syrup versions . The President’s Truth Social Bombshell President Trump fired a post into the digital ether. He claimed Coca-Cola agreed to dump high-fructose corn syrup for "REAL Cane Sugar" in U.S. products. The announcement hit like a barstool declaration—loud, abrupt, short on details. Coca-Cola’s response? A terse nod to "new innovative offerings." No confirmation. No timeline. Just corporate speak wrapped in a question mark. The disconnect betwee...
Post a Comment
Read more

UPS Driver Early Retirement: First Buyout in Company History

By
  Key Takeaways Historic shift : UPS offers  first-ever buyouts  to union drivers, breaking 117 years of tradition Contract clash : Teamsters call the move  "illegal" , claiming it violates job creation promises in their 2023 contract Economic squeeze : Buyouts part of UPS's  "Network of the Future"  plan to cut costs after losing Amazon business and facing trade pressures Worker uncertainty : Buyouts risk stripping  retiree healthcare  from drivers who leave early Union defiance : Teamsters urge drivers to  reject buyouts  and prepare for legal battle The Buyout Blueprint: What UPS Is Offering UPS dropped a bombshell on July 3rd, 2025: For the first time ever, full-time drivers could get cash offers to leave their jobs voluntarily. Company statements called it a " generous financial package " on top of earned retirement benefits like pensions. But details stayed fuzzy — UPS hadn't even told drivers directly yet when the Teamsters went p...
Post a Comment
Read more

Sarepta Stock Plunges 40% as FDA Moves to Halt Gene Therapy Shipments

By
  Key Takeaways Sarepta Therapeutics stock plunged ~40% following a second patient death linked to its gene therapy Elevidys . FDA may pull Elevidys off the market as safety concerns mount; shipments halted for non-ambulatory patients . Therapy initially approved controversially in 2023 for ages 4-5, later expanded amid efficacy debates . Year-to-date stock loss exceeds 87%, erasing billions in market value . Duchenne muscular dystrophy patients face renewed uncertainty as treatment risks outweigh benefits for some . The Bloodbath on Nasdaq Sarepta Therapeutics stock cratered 40% in premarket trading June 16, 2025. It opened at $13.60—a far cry from its 52-week high of $150.48 . The collapse wasn't a surprise to those watching the ticker. Shares had been dying a slow death all year. By July, the year-to-date loss hit 87.5% . Shareholders stared at ruins. Trading volume exploded to 60 million shares. Average volume is 5.9 million . The market cap vaporized—$1.336 billion intraday. D...
Post a Comment
Read more

Gen Z Stare Decoded: Viral TikTok Trend or Societal Mirror?

By
Key Takeaways The Gen Z stare manifests in two primary forms : a vacant expression from service workers during perceived unreasonable customer interactions ( customer service stare ) and from Gen Z customers instead of verbal responses ( customer stare ) . Pandemic isolation critically impacted social skill development : Reduced face-to-face interaction during formative years limited practice with conversational norms and non-verbal cues for many Gen Zers . It’s often misinterpreted as rudeness or disinterest : Older generations may perceive the stare as disrespectful, while Gen Z frequently views it as a legitimate response to inauthentic or inefficient interactions . Underlying factors include heightened anxiety and authenticity values : Gen Z prioritizes genuine communication and may reject performative politeness, while also experiencing higher rates of social anxiety . Workplaces are adapting training programs : Organizations recognize gaps in soft skills like interpersonal commun...
Post a Comment
Read more