5 Counterarguments to Tom Lee's reasoning on expanding BitMine's shareholding

Proposals to significantly expand the number of shares authorized for issuance by BitMine have faced an increasing wave of opposition from shareholders, even as the company continues to affirm Ethereum as a key treasury asset.

Although Tom Lee explains this move as a way to increase long-term flexibility for the business, rather than immediate dilution, many investors still express concerns about the structure, timing, and underlying motivations behind the proposal, suggesting they pose several troubling issues.

5 Strategic Reasons of Tom Lee at BitMine Have Not Convincing Shareholders

The expansion of the authorized share count proposed by Tom Lee was originally intended to strengthen the company’s long-term confidence in Ethereum. However, instead of fostering consensus, this plan has exposed deep divisions among shareholders, especially amid the growing risk of dilution and concerns over weakening governance mechanisms.

Opposition voices do not deny Ethereum’s potential but mainly question whether the structure, timing, and motivations of the plan truly protect shareholder interests. Below are five main concerns explaining why Lee’s strategy has not gained broad support.

1. Urgency Overshadowing the “Future Split” Argument

One of the most heated criticisms revolves around timing. Tom Lee cites the possibility of a future stock split, when Ethereum reaches a peak, to justify expanding the share count now.

However, investors argue this reason is inconsistent with BitMine’s current reality, as the company already has approximately 426 million shares outstanding out of a total 500 million authorized, leaving very limited room for further issuance.

“If a stock split is necessary in the future, shareholders will be willing to vote in favor when market conditions permit,” an analyst commented, also noting that the current urgency reflects a need to continue issuing shares to buy more ETH rather than to facilitate a split.

2. Excessively Large Scale but Lacking Control Mechanisms

The proposed increase from 500 million to 50 billion shares has alarmed many investors. Even to achieve the company’s announced goal of allocating 5% of assets into ETH, BitMine would only need to issue a small portion of this amount.

“Then why is there a need for 50 billion shares?” – analyst Tevis questioned, viewing this as an overreach of authority, granting management unprecedented decision-making power.

Critics argue that this proposal removes shareholder control over future decisions, weakening an essential governance mechanism.

3. ETH Growth Does Not Equate to Increased Shareholder Value

Another notable point concerns the incentive mechanism for management. The fourth proposal links Mr. Tom Lee’s bonus to the total ETH holdings, rather than on ETH per share.

While supporting performance-based rewards, many investors believe this indicator encourages growth in scale regardless of consequences. Tevis warns that the KPI “Total ETH” could lead to asset accumulation but reduce the ETH backing each share due to dilution. Conversely, using ETH per share as a metric would better protect shareholder interests.

4. Concerns Over Issuing Shares Below Net Asset Value (NAV)

The concern about dilution becomes more serious as BitMine no longer trades significantly above NAV. Tevis previously was not worried about dilution when shares traded above NAV, but the situation has changed as the price approaches NAV.

Expanding the authority to issue shares, according to experts, will lower the barrier to issuing below NAV, leading to a permanent reduction in the ETH backing each share.

Net Asset Value of BitMine (NAV) | Source: TradingView “If BMNR issues new shares at a price below NAV, the ETH backing for each share will be permanently reduced,” Tevis stated.

5. BitMine Shares or Spot ETH – Which Is the Optimal Choice?

The debate is intensifying, with some investors arguing that holding ETH directly could offer greater benefits. Many warn that this proposal “opens the door for shareholders to be unexpectedly diluted through at-the-money share issuance.”

Despite many objections, most shareholders remain optimistic about Ethereum’s prospects and support BitMine’s long-term strategy.

What they desire are clearer control mechanisms before granting management too much autonomy over one of the most volatile assets in the cryptocurrency market.