#What Does BitMine's Investment in Eightco Holdings Mean?
BitMine's recent investment in Eightco Holdings, totaling $20 million, has seen a remarkable increase, valued at around $616 million after Eightco's stock price soared nearly 3,000%. This dramatic rise took place following the announcement of a treasury strategy focused on Worldcoin, a cryptocurrency.
Eightco shares reflected significant gains, increasing by 2,982% by the end of Monday’s market session. This surge is largely attributed to a $250 million private placement, which also included BitMine as a key investor. Such moves represent a strategic shift towards embracing cryptocurrency as a treasury reserve asset, with Worldcoin designated as the primary asset while Ethereum and cash will serve as supplementary holdings.
BitMine purchased approximately 13.7 million Eightco shares at an initial price of $1.46 per share, with the closing stock price reaching $45. This shift translates into a paper profit of around $600 million after just one trading session.
According to BitMine's leadership, the company is committed to fostering and investing in cutting-edge projects that contribute to the Ethereum ecosystem. Worldcoin, an ERC-20 token, aims to establish a groundswell of trust and safety across technology platforms, particularly in the realm of identity verification and authentication.
The private placement attracted a diverse range of participants, including well-known investment firms and blockchain-related entities. Eightco Holdings, which specializes in e-commerce infrastructure, plans to rebrand its Nasdaq ticker to "ORBS" in light of its new treasury structure.
Dan Ives, the newly appointed chairman of Eightco, described the treasury strategy as part of the progressive evolution in AI focused on identity verification and validation. The transaction is anticipated to finalise around September 11, pending approvals from Nasdaq.