BitMine Share Expansion Sparks Investor Backlash Despite Ethereum Bet

BitMine’s proposal to massively expand its authorized share count has triggered growing resistance among shareholders, even as the company reinforces its commitment to Ethereum as a core treasury asset. While chairman Tom Lee has positioned the move as a long-term flexibility measure rather than an immediate dilution event, many investors remain unconvinced, arguing that the structure, timing, and incentives behind the plan raise significant governance and valuation concerns.

At the center of the debate is BitMine’s request to increase its authorized shares from 500 million to 50 billion. Lee has suggested the expansion could support future stock splits if Ethereum prices rise substantially. However, critics point out that BitMine already has approximately 426 million shares outstanding, leaving limited headroom under the current authorization. Investors question why such an aggressive increase is necessary now for a hypothetical scenario that could be years away, especially when shareholders could simply approve a split at a later date if conditions justify it. The urgency, they argue, appears more closely tied to BitMine’s ongoing need to issue equity to accumulate more ETH.

Concerns have also emerged around scale and oversight. Many shareholders view the 50 billion share authorization as excessive relative to BitMine’s stated goal of allocating 5% of its balance sheet to Ethereum. The size of the request effectively removes the need for future shareholder approvals, weakening governance safeguards and granting management broad discretion over future dilution.

Executive incentives are another flashpoint. Under Proposal 4, Tom Lee’s performance compensation would be linked to total Ethereum holdings rather than ETH per share. While investors generally support performance-based pay, critics argue that this structure rewards balance sheet growth even if shareholder value per share declines due to dilution. They contend that ETH-per-share metrics would better align management incentives with investor outcomes.

Dilution fears have intensified as BitMine’s stock now trades closer to net asset value (NAV). Issuing shares at or below NAV could permanently reduce the Ethereum backing of each share, making equity ownership less attractive compared to holding ETH directly. Despite the backlash, many dissenting investors remain bullish on Ethereum and supportive of BitMine’s broader vision. What they are demanding instead are clearer guardrails, stronger governance protections, and assurances that shareholder value will not be sacrificed in pursuit of scale.