BitMine Shares Surge on Peter Thiel's Investment
Shares of crypto mining service provider BitMine Immersion Technologies experienced a significant boost, rallying 12.5% in after-hours trading on Tuesday. This surge followed the news that billionaire venture capitalist Peter Thiel had acquired over a 9% stake in the firm.
Thiel's Investment Details
According to a regulatory filing on Tuesday, Thiel's investment involved the purchase of 5.09 million shares in BitMine through various arms of his venture capital firm, Founders Fund. This amounts to a 9.1% stake in the company.
Peter Thiel's Background
Peter Thiel is renowned for co-founding payments giant PayPal and software firm Palantir Technologies. With an estimated net worth of $22.7 billion, he is ranked as the 92nd richest person in the world, according to Forbes.
Recently, Thiel and other tech billionaires filed for a bank charter to launch a new financial institution named Erebor, aiming to address the void left by the collapse of the crypto-friendly Silicon Valley Bank in 2023. Additionally, Thiel’s Founders Fund reportedly led a $200 million funding round in prediction market platform Polymarket, valuing the company at $1 billion.
Furthermore, Bullish, a digital asset exchange backed by Thiel, has reportedly filed confidential paperwork for an initial public offering (IPO).
BitMine Stock Performance
BitMine (BMNR) shares closed Tuesday’s trading session down 2.5% but rebounded with a 12.5% rally after-hours, reaching $44.97, according to Google Finance. The stock briefly traded at $48.50 after the bell, marking an upswing of over 21% from the regular trading session's close.
Since its US debut on May 8 at $8, the stock has increased by nearly 400%.
BitMine's Ethereum Strategy
BitMine announced on Monday that it now holds over half a billion dollars worth of Ether (ETH) in its treasury. As of Monday, the firm held more than 163,000 ETH in its reserve, acquired at an average price of $3,072 per token. This strategic move was jumpstarted by a recent $250 million private placement that concluded on July 9.
Codeum is dedicated to enhancing blockchain security and providing top-tier development services. We offer smart contract audits, KYC verification, custom smart contract and DApp development, and expert tokenomics and security consultation to ensure the integrity and success of blockchain projects.