BlockBeats News, January 3rd, Tom Lee, Chairman of the Ethereum Treasury Company BitMine, stated on social media that BitMine needs to increase its authorized share capital for three main reasons:
· To provide room for selective subsequent issuance (ATM) and financing
· To facilitate seizing strategic trading opportunities (such as mergers and acquisitions)
· To accommodate future stock split needs (most crucial)
Whenever a company conducts a stock split, the total authorized share capital must be sufficient to meet operational requirements. As Ethereum has been validated as the future of finance, he believes that the target exchange rate of ETH to BTC could reach 0.25. Assuming ETH will rise to $250,000 in the future, the BMNR share price will reach $5,000 at that time. In order for the public to “conveniently participate” in stock investment, the company needs to reset the share price to around $25 through a stock split. These stock split operations will increase the total outstanding shares. Therefore, BitMine can only implement future stock split plans after increasing its total authorized share capital.
Possibly influenced by this statement, the BMNR closing price on Friday reached $31.19, a 14.88% increase.
