Kraken Collaborates with BitMine as Ethereum Treasury Plan Sparks 400% Stock Surge

BitMine Immersion Technologies has ignited a remarkable 400% stock rally following its announcement to establish a $250 million ethereum treasury and the appointment of Wall Street veteran Tom Lee as chairman. The private placement, priced at $4.50 per share, is set to close by July 3, pending regulatory approvals. This strategic pivot underscores BitMine's deeper involvement in the Ethereum ecosystem, including notable collaborations with Kraken. The move highlights the growing institutional interest in Ethereum and its potential to reshape the financial landscape. With Tom Lee at the helm, BitMine is poised to leverage its treasury and partnerships to drive innovation and adoption in the crypto space.

BitMine Stock Surges 400% on Ethereum Treasury Plan and Tom Lee Appointment

BitMine Immersion Technologies ignited a 400% stock rally after unveiling plans to establish a $250 million Ethereum treasury, alongside appointing Wall Street veteran Tom Lee as chairman. The private placement, priced at $4.50 per share, aims to close by July 3 pending regulatory approvals.

The MOVE signals a strategic pivot toward deeper Ethereum ecosystem involvement, including collaborations with Kraken and FalconX. Lee, renowned for his leadership at Fundstrat, brings institutional credibility to the initiative. "This isn't just treasury management—it's a bet on Ethereum's infrastructure becoming the backbone of decentralized finance," Lee remarked during the announcement.

Tokenized Stocks: The Promise and Pitfalls of Blockchain-Based Equity Trading

Kraken and Backed Finance have launched "xStocks," a tokenized equities product enabling blockchain-based trading of traditional stocks—with Robinhood expected to follow. The offering promises 24/7 trading, instant settlement, and DeFi composability, with dividends paid directly to wallets. Legal claims on underlying shares add legitimacy, but access is restricted: only KYC-verified, non-U.S. Kraken users can mint or redeem tokens via a Liechtenstein SPV that executes trades during U.S. market hours.

The peg mechanism faces challenges. While arbitrage maintains parity during market hours, price discrepancies emerge when exchanges close—like a $290 Sunday trade for Tesla tokens versus Friday’s $300 close. Convergence relies on voluntary burns when markets reopen, exposing liquidity risks.