BitMine Stock Surges 12.5% After Peter Thiel Discloses 9% Stake

Peter Thiel's Strategic Investment in BitMine

Shares of crypto mining service provider BitMine Immersion Technologies experienced a significant rally, jumping 12.5% in after-hours trading on Tuesday. The surge came following news that billionaire venture capitalist Peter Thiel had acquired a substantial stake in the company.

Through various arms of his venture capital firm Founders Fund, Thiel purchased 5.09 million shares in BitMine, representing a 9.1% ownership stake in the crypto mining firm. The investment details were revealed in a regulatory filing submitted on Tuesday.

Peter Thiel's Investment Portfolio and Background

Peter Thiel is widely recognized as a co-founder of payments giant PayPal and software firm Palantir Technologies, which also serves as a defense contractor. With an estimated net worth of $22.7 billion, Forbes ranks him as the 92nd richest person globally.

The billionaire investor has been actively expanding his presence in the cryptocurrency and financial technology sectors. Earlier this month, Thiel joined other tech billionaires in filing for a bank charter to launch Erebor, a new financial institution designed to serve the crypto startup ecosystem following the collapse of Silicon Valley Bank in 2023.

Recent Investment Activities

Thiel's investment activities in the crypto space have been notably active. In June, his Founders Fund reportedly led a $200 million funding round for prediction market platform Polymarket, valuing the company at $1 billion. Additionally, Thiel-backed Bullish, a digital asset exchange, has filed confidential paperwork for an initial public offering in the United States.

BitMine Stock Performance Analysis

BitMine shares closed Tuesday's regular trading session down 2.5% but experienced a dramatic turnaround in after-hours trading. The stock rallied 12.5% to $44.97, with peak after-hours trading reaching $48.50, representing a more than 21% increase from the regular session close.

The stock has demonstrated remarkable performance since its US market debut on May 8 at $8 per share, climbing nearly 400% to current levels. This substantial growth reflects strong investor confidence in the company's crypto mining operations and strategic direction.

Financial Performance and Growth

During the quarter ended May 2025, BitMine reported strong financial results that supported investor optimism. The company's net revenue increased by 67.5% year-over-year, while net profits grew by 43.18% during the same period. These robust financial metrics demonstrate the company's operational efficiency and market position in the competitive crypto mining sector.

BitMine's Ethereum Treasury Strategy

On Monday, BitMine announced a significant strategic move by disclosing that it now holds more than half a billion dollars worth of Ethereum in its corporate treasury. The company maintains reserves of more than 163,000 ETH tokens, purchased at an average price of $3,072 per token.

This Ethereum treasury strategy represents a bold approach to corporate treasury management, positioning BitMine to benefit from potential appreciation in Ethereum's value while maintaining substantial crypto holdings for operational purposes.

Recent Capital Raising Activities

To fund its Ethereum treasury strategy, BitMine successfully completed a $250 million private placement that concluded on July 9. This substantial capital raise enables the company to continue building its Ethereum reserves while maintaining operational flexibility for its core crypto mining business.

The private placement demonstrates strong institutional investor confidence in BitMine's strategic direction and management team's ability to execute their treasury strategy effectively.

Market Implications and Future Outlook

Peter Thiel's investment in BitMine signals strong institutional confidence in the crypto mining sector's long-term prospects. The combination of Thiel's strategic investment, BitMine's strong financial performance, and the company's innovative Ethereum treasury strategy positions the firm well for continued growth.

The after-hours stock surge following Thiel's disclosure suggests that investors view his involvement as a positive catalyst for the company's future development. With crypto mining continuing to evolve and institutional adoption of cryptocurrency treasury strategies increasing, BitMine appears well-positioned to capitalize on these trends.

The company's dual approach of maintaining profitable mining operations while building substantial cryptocurrency reserves represents a sophisticated strategy that could serve as a model for other firms in the sector.