A few days after the annual shareholders' meeting of BitMine (BMNR) in Las Vegas, a conflict erupted. The situation revealed serious disagreements between management and investors.
The main complaints concern the quality of corporate governance, transparency of reporting, and a radical change in the business model. The organization intends to move away from its narrow focus on Ethereum staking and become a major capital allocator.
The reaction of top management to accusations of unprofessionalism
Shareholders sharply criticized the organization of the recent event. The main dissatisfaction stemmed from the absence of the CEO and CFO, the haste of the presentations, and the uncertainty of the voting results. Additionally, key speakers who were previously announced did not appear at the meeting. Investors characterized the gathering as poorly managed, noting a lack of respect for the participants.
Additional questions arise regarding Tom Lee's dual roles in BitMine and the analytical firm Fundstrat. Market participants doubt his ability to give sufficient attention to the operational activities of the mining company.
Board member Rob Sechan acknowledged the shareholders' disappointment but explained the shortcomings as a transitional period. According to him, many executive positions were filled only a few days before the meeting. Sechan emphasized that the main goal of the meeting was to clarify the long-term potential of the new 'DAT-plus' strategy.
Critics, in turn, insist that the board's response does not address the fundamental issues of planning and accountability of management to the shareholders.
Change of strategy and discussion around the $200 million deal
Despite managerial challenges, the management confirmed its course towards large-scale transformation. BitMine aims to become a digital holding company that invests capital in projects to expand the Ethereum ecosystem. Currently, the organization controls over 4 million ETH (about $14 billion). Annual revenue from staking is estimated to be in the range of $400–430 million. In the long term, the company plans to increase its ownership stake to 5% of the total cryptocurrency supply, which would raise profitability to $540–580 million.
Rob Sechan compared this approach to the methods of Berkshire Hathaway. He described the strategy as a disciplined allocation of capital to productive assets, adapted for the digital age. However, not all investors share this optimism, considering the goals excessively ambitious.
The most controversial decision was BitMine's obligation to invest $200 million in Beast Industries, a company owned by blogger MrBeast. The project aims to integrate Ethereum into the content creators' economy through tokenized platforms.
Proponents of the deal believe this will attract a youth audience and accelerate the mass adoption of technologies. Opponents view the partnership as a distraction that hinders the resolution of operational issues and corporate governance.
The recent meeting demonstrated a clear tension between the management's ambitions and the demands for transparency. BitMine must prove that the 'digital Berkshire Hathaway' model can provide stable returns without compromising shareholder trust. Rob Sechan promised to improve the quality of interaction with investors at future events.
