Sharplink Gaming recently stunned the market, soaring more than 4,000% after announcing a $450 million capital raise, only to crash 90% in the weeks that followed—a stark reminder of the risks in fast-moving crypto equities.

Now, Bitmine Immersion (BMNR), led by Fundstrat’s Thomas Lee, has emerged as the latest hot crypto proxy play. The firm’s shares more than doubled on Thursday alone, exceeding $140, and have surged over 3,000% in under a week since revealing plans to raise $250 million through a share sale to purchase ether (ETH).

The private placement, priced at $4.50 per share and set to close today, drew significant interest from major institutional players, including Founders Fund, Pantera, FalconX, Kraken, Galaxy Digital, and Digital Currency Group (DCG).

Bitmine is pitching itself as a publicly traded vehicle for ether exposure, akin to how Michael Saylor’s MicroStrategy (MSTR) became a leveraged bet on bitcoin. This strategy has recently gained traction as investors hunt for new ways to gain crypto exposure via public markets.

Previously focused on crypto mining with immersion cooling technology, Bitmine also held $16 million worth of bitcoin prior to its recent fundraising initiative.

A Sharplink Déjà Vu?

The explosive rally in Bitmine shares bears a striking resemblance to Sharplink Gaming’s meteoric—and ultimately volatile—performance. Sharplink, under the new direction of Consensys co-founder Joseph Lubin, pivoted into becoming an ETH treasury firm last month. Its shares skyrocketed as much as 4,000% within days of announcing a $450 million fundraising round. However, after closing its ETH acquisition, Sharplink’s stock tumbled more than 90% as early private placement investors locked in profits and sold off shares.

Bitmine’s soaring valuation already assumes significant future gains from its ETH holdings. The company currently holds a market capitalization exceeding $800 million, and projections suggest it could reach roughly $7 billion once the new shares from its fundraising round are fully accounted for.

Given this backdrop, retail investors tempted to jump into the rally should proceed with caution.