Bitmine's potential inclusion in the Russell 1000 index has sparked hopes of a stock rally, according to Tom Lee. The company's chairman highlighted the possibility of Bitmine joining the benchmark after the latest reconstitution update on June 18.
With holdings worth approximately $8.1 billion, Bitmine is the largest Ethereum treasury company globally and the second-largest crypto treasury overall behind Strategy. Lee stated that membership in the Russell 1000 could increase demand for the stock as many institutional funds and asset managers are required to allocate capital only to companies included in major indexes.
The update comes as Bitmine continues to expand its position as a major Ethereum holder, with approximately $219 million in annual staking rewards expected to help support dividends tied to its new preferred shares. Lee emphasized that projected recurring cash flow from staking rewards could provide additional buying demand if the company is added to the index.