5 Reasons Tom Lee’s BitMine Stock Strategy Is Under the Spotlight

Jakarta, Pintu News – The polemic over BitMine’s share expansion plan has sparked concern among investors. Tom Lee, the man behind the proposal, argues that increasing the number of allowed shares from 500 million to 50 billion is a strategic move in anticipation of future stock splits and the growing value of Ethereum . However, many investors feel that this will only reduce the value of their investments and question some aspects of the proposal.

Questionable Timing: Urgency vs. Long-term Strategy

Criticism of this proposal often focuses on the timing aspect. Lee cited a future stock split, which would take place when the price of Ethereum (ETH) reaches extremely high levels, as a reason to increase the current number of permitted shares. However, BitMine currently has around 426 million shares out of the 500 million allowed, which means that the room for maneuver is very limited.

This urgency shown by Lee, according to some investors, is more reflective of BitMine’s need to continue issuing shares to buy Ethereum (ETH). This raises the question of whether this move is really in preparation for a stock split or just for short-term funding needs.

Large Scale Without Adequate Supervision

The request to increase the permitted share limit to 50 billion also raises concerns. Such a large scale increase would, according to some, eliminate the need for shareholder approval in the future, thereby removing an important corporate governance oversight.

Without effective oversight, BitMine may make decisions that do not necessarily benefit shareholders. This poses the risk that important decisions impacting share value could be made without shareholder approval or even knowledge.

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Executive Incentives Not Protecting Investor Value

Another concern arises from the proposed executive incentive structure. In the proposal, Tom Lee’s compensation is linked to total Ethereum (ETH) holdings, rather than ETH per share. Although performance-based, this metric is thought to encourage asset growth without considering the impact on shareholder value.

Investors are concerned that this strategy encourages the accumulation of ETH through the issuance of new shares, even if it leads to dilution. In comparison, the ETH per share metric is considered more protective of investor interests. Without this safeguard, growth in the company’s crypto assets could occur at the expense of individual shareholder value.

Risk of Issuing Shares Below Net Asset Value

Dilution concerns are heightened as BitMine shares no longer trade at a significant premium to net asset value (NAV). When shares are close to or below NAV, the issuance of new shares has the potential to hurt existing shareholders. In this context, each new share will reduce the portion of Ethereum (ETH) backing each share.

If shares are issued below NAV, the value of ETH per share will drop permanently. Investors think that the proposal to authorize shares too loosely increases the risk of such a scenario. This is particularly sensitive in the volatile and sentiment-laden cryptocurrency market.

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BitMine Shares vs Direct ETH Ownership

The debate eventually led to a fundamental question: is it better to own BitMine shares or buy Ethereum (ETH) directly. Some investors are beginning to question the added value of owning shares if the risk of dilution continues to rise. Without clear restrictions, shares of crypto companies could become less attractive than the underlying asset.

Concerns also include the potential for ATM dilution in a short period of time. Investors fear that their interests could be eroded at any time by management decisions. Nevertheless, most critics emphasize that they remain bullish on Ethereum (ETH) and crypto in general.

To conclude, the BitMine polemic shows that the adoption of cryptocurrencies in a public company structure requires strong and transparent governance. Investors do not reject crypto-based strategies, but demand clear value protection. Without adequate guardrails, aggressive strategies risk eroding market confidence.

Conclusion

Despite significant concerns about BitMine’s share expansion plans, many shareholders remain optimistic about the prospects for Ethereum (ETH) and support the company’s long-term strategy. However, it is important for BitMine to consider investor feedback and ensure that decisions are made that increase shareholder value, rather than simply expanding the scale of operations.

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Reference

• BeInCrypto. Bitmine Shareholder Dilution Proposal Analysis. Accessed on January 10, 2026
• Featured Image: CNBC