Tom Lee, chairman of publicly listed Ether treasury company BitMine Immersion Technologies, has called on shareholders to support a proposal to dramatically expand the company’s authorized share count.
The proposal would increase the limit to 50 billion shares from the current 50 million.
Lee said the change is designed to prepare BitMine for potential future stock splits.
He argued that sustained Ether price appreciation could rapidly push the company’s valuation higher.
Ether-linked valuation models shape proposal
Lee said BitMine’s share price closely tracks movements in Ether.
He explained that he modeled future outcomes using the ETH-to-Bitcoin ratio as a key input.
Under one scenario, Ether could reach $250,000 if Bitcoin climbs to $1 million.
In that case, BitMine’s share price would rise to levels that Lee said would be inaccessible for most retail investors.
Stock split mechanics explained
Lee said that if Ether reached $250,000, BitMine shares would carry an implied price of roughly $5,000.
He argued that most investors prefer stocks trading at more familiar price points.
“Not everybody wants a stock price at $500, $1,500, or $5,000. Most people want shares to stay at around $25.”
To maintain that level, Lee said BitMine would need to implement a 100-for-1 stock split.
Such a split would result in approximately 43 billion shares outstanding.
Authorized shares versus issued shares
Lee emphasized that increasing the authorized share count does not mean immediate dilution.
“The current shares outstanding are 426 million, and we are trying to get the authorized share count to 50 billion. That doesn’t mean we’re issuing 50 billion shares. That’s what we want the total maximum shares to be,” he said.
Unit bias and investor psychology
Lee framed the debate around the concept of unit bias in financial markets.
Unit bias refers to investors focusing on the number of shares owned rather than overall valuation or risk-adjusted returns.
He argued that excessively high share prices can discourage participation from smaller investors.
Shareholder backlash and criticism
Reaction to the proposal on social media was largely negative.
Several users argued that raising the authorized share limit is inherently dilutive.
“Tom, this looks fishy and ridiculous to authorize a higher share count because the stock might go to $500. You can do this next year when it isn’t in the gutter,” one user wrote.
BitMine continues aggressive Ether accumulation
Despite the criticism, BitMine has continued to grow its Ether treasury.
Earlier this week, the company purchased 32,938 ETH valued at more than $102 million.
BitMine’s total Ether holdings crossed 4 million ETH in December.
At current prices, that stash is valued at more than $12 billion.
The company has also begun staking its Ether to earn yield.
Staking involves locking tokens to help secure a proof-of-stake blockchain while earning rewards paid in the same asset.