Bitmine Invests $200 Million in MrBeast’s New Crypto Venture

Bitmine has committed $200 million to MrBeast’s Beast Industries as “MrBeast Financial” applies for a trademark focused on cryptocurrency payments, exchanges, and decentralized finance (DeFi) services.

Key Takeaways

Bitmine is investing $200 million in MrBeast's Beast Industries.
The trademark application for “MrBeast Financial” covers crypto payment processing and DeFi services.
MrBeast’s massive online following makes this venture significant for attracting younger users to digital assets.
Allegations surrounding MrBeast’s cryptocurrency activities have surfaced, but remain unproven in court.
The venture could encourage new users in the cryptocurrency space as institutional investments converge with influencer-led projects.

Bitmine backs MrBeast Financial with $200M crypto bet.

Bitmine, a prominent Ethereum-focused investment firm, announced a substantial investment of $200 million into Beast Industries, which operates under YouTube superstar MrBeast. The investment, set to be finalized by January 19, coincides with the trademark filing for “MrBeast Financial” that aims to offer crypto-related financial services.

Bitmine Backs MrBeast Financial

Tom Lee’s Bitmine has confirmed a $200 million investment in Beast Industries, the organization responsible for YouTube creator MrBeast. This financial agreement is expected to close on January 19. The investment aligns with Beast Industries filing a trademark application for “MrBeast Financial”. This filing covers various services, including crypto payment processing, exchange operations, and decentralized trading solutions. Jeff Housenbold, CEO of Beast Industries, indicated that they are exploring how to integrate decentralized finance into their forthcoming financial platform.

The Partnership Between MrBeast and Tom Lee

Lee has characterized Beast Industries as “the largest and most innovative creator-based platform worldwide”, particularly popular among younger audiences. MrBeast’s primary YouTube channel boasts hundreds of millions of subscribers.

This deal follows a video released in November by cryptocurrency investigator Coffeezilla, which scrutinized MrBeast’s engagement with cryptocurrency. The video alleged that MrBeast made over $10 million from SuperVerse by buying tokens with a $100,000 investment during the presale, later promoting and selling them during their unlock phases.

Coffeezilla referenced leaked messages between MrBeast and SuperVerse’s founder, as well as wallet analysis that linked transactions to the YouTuber. It also highlighted MrBeast’s involvement with projects like PMON, STACK, Ethernity, and XCAD, where he purportedly profited from promotional efforts.

A representative for MrBeast informed Coffeezilla that these investments were handled by a fund consisting of industry experts, affirming full regulatory compliance. The representative clarified that MrBeast personally does not manage the wallets in question.

In October, independent blockchain analysts claimed that MrBeast possesses over 50 cryptocurrency wallets, reportedly generating $23 million through diverse schemes. However, none of these claims have been substantiated in a court of law.

Bitmine’s Focus and Vision

Bitmine identifies itself as a leading Ethereum treasury company, aiming to acquire 5% of Ethereum’s total supply. The firm's investors include notable figures and organizations such as Cathie Wood's ARK, Founders Fund, Bill Miller III, Pantera Capital, Kraken, Digital Currency Group, and Galaxy Digital.

Trading on the NYSE American, Bitmine focuses on implementing digital asset strategies tailored for institutional investors. The trademark application for MrBeast Financial is still in the preliminary stages and has not yet been assigned to an examiner, as per USPTO records. It is important to note that filing for a trademark does not guarantee that a product will be launched.

If Beast Industries manages to establish a crypto platform aimed at MrBeast’s expansive audience, it could present a pathway for younger individuals to enter the world of digital assets. The investment connects institutional funding to a creator whose cryptocurrency background includes unproven claims of insider trading and pump-and-dump schemes.

MrBeast’s content, which encompasses viral pranks and generous giveaways, has cultivated a vast following that, according to industry analysts, justifies investments in the nine-figure range. Beast Industries operates as a media company with diverse revenue sources beyond just advertising.

Recent metrics indicate that MrBeast’s audience has not substantially decreased despite the controversies surrounding his cryptocurrency activities and a workplace harassment investigation led by attorney Alex Spiro earlier this year.

On Thursday, Bitmine held its annual shareholders meeting at the Wynn Las Vegas.