Bitmine, the largest company holder of Ethereum, filed a filing with the Securities and Exchange Commission (SEC) on August 12, expanding its share offering by $20 billion.
The filing complements the company’s previous market (ATM) equity program, worth $4.5 billion.
Bitmine’s equity offerings currently stand at around $24.5 billion, almost five times the previous total capacity. The company expects approximately 173.5 million common shares to be outstanding once the offer closes.
The proceeds will be directed towards working capital, more Ethereum acquisitions, debt repayments, income-generating assets, and other companies’ needs, according to the filing.
The expansion comes within 24 hours after Bitmine revealed that it had purchased 317,126 ETH last week. The acquisition brought total ownership to 1.15 million ETH, worth more than $5 billion at its current price.
Meanwhile, the Market Observer notes that Bitmine’s latest financing drive will help ensure 5% of Ethereum’s total supply.
Ethereum lifts bitminestock
Bitmine’s aggressive Ethereum accumulation strategy has significantly increased the stock price.
A report from Pantera Capital showed that the company significantly increased Ethereum per share (EPS) in the first month after launching its ETH-focused strategy.
According to Pantera:
“Bitmine has accumulated more ETH than the strategies (formerly MicroStrategy) that the strategy was implemented (formerly MicroStrategy).”
At the end of June, Bitmine’s shares were $4.27 each, surpassing its net asset value (NAV) of $4 per share. By August, the stock had skyrocketed to $51, showing a 1,100% increase in over a month.
According to Pantera, the stock price surge was driven primarily by an increase in ETH per share (about 60%), rising prices for Ethereum between $2,500 and $4,300 (about 20%), and a small boost from the NAV expansion (about 20%).
Google Finance data shows that the momentum is not slowing down and that it is trading nearly $60 at the time of reporting.