Shares of Bitmine Immersion Technologies (BMNR) have surged more than 1,000% following a bold three-part announcement that’s ignited investor excitementand speculation. The company revealed a $250 million private placement offering to fund an Ethereum treasury strategy, echoing the path taken by MicroStrategy with Bitcoin. The raise was led by MOZAYYX and included some of the most active players in crypto investing todayFounders Fund, Galaxy Digital, Kraken, Pantera, Republic Digital, DCG, and others. Bitmine intends to use the proceeds to build an Ethereum-heavy balance sheet, betting on the long-term value of the world’s second-largest blockchain.

• Warning! GuruFocus has detected 6 Warning Signs with BMNR.

At the same time, Bitmine named Tom Lee, the founder of Fundstrat and a long-time crypto bull, as chairman of the board. Lee is no stranger to big callshis early conviction in Bitcoin and tech stocks has earned him a loyal Wall Street following. On CNBC, Lee argued that Ethereum could eventually rival Bitcoin due to its critical role in the booming stablecoin economy. Stablecoins now generate a large portion of the fees on Ethereum’s network, a trend that manyincluding U.S. Treasury officialsbelieve is just getting started. His presence at Bitmine adds more weight to the company’s shift from miner to long-term crypto asset holder.

The stock’s parabolic rise has caught attention, but it also comes with a familiar warning: crypto-treasury strategies may be powerful narrative drivers, but they introduce a new layer of volatility. Bitmine’s future will now be tightly linked to Ethereum’s trajectoryand sentiment can turn fast in this space. For investors bullish on ETH’s long-term use case, direct exposure might be the simplerand less volatilepath.

This article first appeared on GuruFocus.