Tom Lee Makes Case for Raising Authorized Share Limit to 50 Billion
BitMine chairman Tom Lee proposes increasing authorized shares to 50 billion to enable future stock splits if Ether's price drives share value too high.Summary
Tom Lee, chairman of the publicly listed Ether treasury company BitMine, is urging shareholders to approve a proposal to increase the company's authorized share count from 50 million to 50 billion. Lee argues this massive increase is necessary to accommodate potential future stock splits, which would be required if Ether's price (ETH) continues to rise, causing BitMine's share price to become inaccessible to retail investors. Lee modeled a scenario where ETH reaches $250,000 (with Bitcoin at $1 million), which would imply a BitMine share price of about $5,000. To combat this "unit bias" and keep shares around $25, a 100:1 split might be needed, creating 43 billion shares outstanding. Lee clarified that authorizing 50 billion shares does not mean issuing them immediately. The proposal has faced significant backlash on social media, with critics viewing the move as potentially dilutive.
(Source：Cointelegraph)