BitMine Immersion Technologies is slated to join the Russell 1000 Index of large U.S. companies on June 26, triggering potential multi-billion dollar automated buying from index funds. The company, with a market cap above $10.7 billion, aims to secure 5% of Ethereum’s total supply. Other crypto firms like Galaxy Digital and SharpLink are also set for inclusion in Russell indexes as part of a wider institutional wave.
BitMine Immersion Technologies is expected to enter the Russell 1000 Index, an industry-standard benchmark for institutional equity exposure. The inclusion will finalize after the closing bell on June 26 as part of FTSE Russell’s semi-annual reconstitution, reshuffling market-capitalization boundaries to reflect Wall Street’s changing landscape.
Chairman Tom Lee stated in an post that the company’s $10.7 billion market capitalization came in well above the $5.7 billion threshold for large-cap inclusion. He noted that “many active managers only buy equities on the Russell 1000.”
Lee added that passively managed index funds and ETFs mirroring Russell benchmarks typically hold 20% to 25% of a member company’s total market cap. This hints at a massive, multi-billion dollar wave of forced buying that could soon drive demand.
The Ethereum-buying firm’s shares closed around $18.88 on Friday, a 30% decrease year-to-date, according to Yahoo Finance. The stock has largely traded sideways since plunging as low as $17.19 in February, after soaring as high as $161 last year.
For BitMine, Russell 1000 inclusion could stoke inflows from investors unaware of its mission to grow its Ethereum holdings per share. The company aims to secure 5% of Ethereum’s total supply, a sum valued at roughly $12.8 billion.
BitMine currently controls 4.6 million Ethereum worth $10 billion, representing 3.8% of Ethereum’s total supply, according to Strategic Ethereum Reserve. The firm started accumulating Ethereum aggressively last July.
Ethereum changed hands around $2,100, according to CoinGecko. The second-largest digital asset by market capitalization has slid 7.8% over the past month.
BitMine isn’t the only crypto firm affected by the reconstitution. Ethereum treasury company SharpLink is slated to join the small-cap Russell 2000 Index alongside crypto exchange Gemini.
Crypto financial services firm Galaxy Digital is expected to join the large-cap Russell 1000 Index. Strategy, the world’s largest corporate holder of Bitcoin, joined the Russell 1000 Index around two years ago.
