BitMine stock up 14% as Tom Lee asks shareholders to approve 'dramatic' share increase

Tom Lee, chairman of Bitmine Immersion Technologies (ticker BMNR), has asked shareholders to approve a motion to increase the company's total number of shares to 50 billion.

"Currently, BitMine has 500 million shares authorized and we want to increase this to 50 billion," Lee said Friday in a video posted to YouTube.

The market appeared to embrace what Lee called a "dramatic" share increase as BitMine's shares rose 14% on Friday, changing hands at $30.93 as of 2:48 p.m. ET.

In addition to facilitating both capital market activities and potential acquisitions, according to Lee, the principal reason for increasing the number of shares includes concerns about accommodating stock splits and keeping the share price at a reasonable level. 

Simply put, Lee said BitMine's shares follow the price of Ethereum and if ether rises, BMNR might become too expensive. For example, if ETH rises to $22,000, that would likely drive the company's stock price to an estimated $500, the executive estimated. If ETH traded at $62,500, BitMine's shares would hit about $1,500, he also said.

"Not everybody wants a stock price at $500 or 41,500 or $5,000. Most people want shares to stay at around $25," Lee said. 

BitMine is the largest Ethereum digital asset treasury (DAT), with roughly 3.41% of the token's circulating supply. Last week, the Nasdaq-listed company said it had added another 44,463 ETH, pushing its total holdings to 4,110,525 ether.

The shareholders' deadline to vote on the proposal is Jan. 14.