BitMine Immersion Technologies Inc ( BMNR ) shares are bouncing around in early trading Tuesday after the company announced a shelf offering by selling stockholders and a subsequent stock repurchase program.

What Happened: After the market close on Monday, BitMine said in a filing that it registered for the offer and resale of shares and warrants in a private placement offering that closed on July 8.

The offering includes 45.11 million shares of common stock, 11 million pre-funded warrants and warrants to a combination of strategic advisors, placement agents and representatives.

BitMine is not selling any shares in the offering and will not receive any proceeds from sales of shares by selling stockholders.

BitMine closed on its initial private placement of $250 million on July 9 with intentions to purchase ETH, the native cryptocurrency of the Ethereum (CRYPTO: ETH) blockchain. Fundstrat’s Tom Lee was also appointed chairman of the company’s board.

Before the deal was announced, BitMine had a market cap of less than $26 million and shares had fallen around 45% year-to-date. BitMine had a market cap of approximately $3.94 billion as of Monday's close, according to Benzinga Pro.

BitMine on Tuesday announced that its board approved a buyback of up to $1 billion, allowing the company to repurchase its shares from time to time.

“In our road to achieving ‘the alchemy of 5%’ of ETH, there may be times when the best expected return of our capital is to acquire our own shares,” Lee said.

BitMine said it has $401.4 million of unencumbered cash, 625,000 ETH tokens and 192 Bitcoins as of July 28. The company said its combined net asset value currently stands at $22.76 per share.

BMNR Price Action: BitMine shares were down 7.36% at $32.53 at the time of publication Tuesday, according to Benzinga Pro. BitMine shares traded down to around $28 in Monday’s after-hours session before bouncing back.

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