Tom Lee Proposes Dramatic Increase of Authorized Shares to 50 Billion

Tom Lee, President of BitMine, Calls for Major Expansion of Shares

Tom Lee, the president of the publicly listed company BitMine, has urged shareholders to support a proposal to increase the number of authorized shares from 50 million to 50 billion. Lee justified this proposal by highlighting the need for available shares to issue, especially given the fluctuations in the price of Ether that affect the company's valuation.

Lee explained that the price of BitMine shares closely follows the price of Ether (ETH) and has projected future valuations using the ETH/BTC ratio. According to his estimates, ETH could reach $250,000 if Bitcoin (BTC) were to hit $1 million. Such a scenario could drive BitMine's stock price to levels that would be inaccessible for most retail investors. He noted that if ETH reaches $250,000, BitMine would need to initiate a 100:1 stock split to maintain a share price of around $25.

Responses to Lee's proposal on platform X have been overwhelmingly negative, with many users believing that raising the authorized limits is a dilutive move. Several investors expressed skepticism about the timing of this expansion, given the current market landscape.

In recent months, BitMine has acquired a substantial amount of ETH, totaling over 4 million units valued at more than $12 billion.