Key Highlights
- Bitmine unveils a perpetual preferred stock issuance targeting up to $300 million at $100 per share
- Investors receive a 9.5% annual dividend distributed weekly, backed by Ethereum staking returns
- Trading will commence on NYSE under ticker symbol BMNP
- Company controls more than 5.3 million ETH valued at approximately $10 billion but faces nearly $9 billion in paper losses
- The structure follows Strategy’s successful STRC preferred stock framework, now valued at $8.5 billion after nine months
Bitmine Immersion Technologies has unveiled a $300 million preferred stock issuance as the company seeks fresh capital channels to support its Ethereum accumulation approach. This initiative replicates a framework pioneered by Michael Saylor’s bitcoin-focused enterprise, Strategy.
The firm submitted documentation to the SEC this Wednesday, revealing plans to issue 3 million shares of Series A Perpetual Preferred Stock priced at $100 each. Trading is expected to begin on the New York Stock Exchange under ticker BMNP within a month of distribution.
Shareholders will collect a guaranteed 9.5% yearly dividend, equivalent to $9.50 annually per share, distributed on a weekly basis. The company intends to finance these payments through income generated from staking its Ether reserves.
Preferred equity represents a hybrid security positioned between traditional stocks and fixed-income instruments. Holders receive consistent distributions instead of relying purely on capital appreciation.
Strategy’s Framework Sets the Standard for Bitmine
Strategy introduced its perpetual preferred offering, STRC, in July 2025. The instrument has expanded to an $8.5 billion market valuation, establishing it as the world’s largest preferred stock measured by market capitalization.
While Bitmine offers a locked 9.5% dividend rate, STRC employs a floating rate mechanism that adjusts monthly to maintain trading prices around $100. According to Strategy president Phong Le, approximately 80% of STRC investors are individual retail participants.
Strive, another bitcoin treasury operator, similarly launched dividend-bearing preferred shares trading under ticker SATA, demonstrating the growing adoption of this capital structure within the cryptocurrency treasury sector.
Ethereum Holdings Face Mounting Valuation Pressure
Bitmine presently maintains ownership of over 5.3 million ETH, representing approximately 4.5% of Ethereum’s entire circulating token supply. Management states the company has achieved 90% completion of its “Alchemy of 5%” acquisition objective in merely 11 months.
Based on prevailing market rates, these holdings are valued near $10 billion. However, the firm carries an estimated $9 billion in mark-to-market losses, following Ethereum’s steep decline from roughly $5,000 in October.
Ether experienced a price drop exceeding 12% over the previous seven-day period and touched a 14-month bottom of $1,734 during early Thursday trading sessions.
Bitmine’s common shares declined almost 6% Wednesday to $16.90, marking the lowest valuation since the company transitioned to an Ethereum treasury model in June 2025.
Company chairman Tom Lee commented Monday that current ETH valuations fail to account for what he perceives as strengthening network fundamentals for Ethereum.
Funds raised from this offering will support general corporate objectives, including additional ETH acquisitions, expansion of staking operations via its Made in America Validator Network, and common stock buyback programs.
The issuance arrives during a challenging period for the preferred stock structure across the sector. Strategy’s STRC traded 5% beneath its $100 par value Wednesday, while Strive’s SATA declined to approximately $97, as market participants express concerns about sustainability of dividend distributions amid declining cryptocurrency valuations.
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