The Ethereum-focused treasury company is borrowing from the Saylor playbook, offering 3 million preferred shares at $100 each while its common stock sits nearly 50% off recent highs.
Bitmine Immersion Technologies wants to raise $300 million by selling preferred stock. And it plans to use most of that cash to buy even more Ethereum.
The company announced on June 3 that it intends to issue 3 million shares of 9.50% Series A Perpetual Preferred Stock, each with a stated value of $100. The shares would pay cumulative weekly cash dividends at a fixed annual rate of 9.5%.
Bitmine has applied to list the preferred shares on the NYSE under the ticker BMNP, with trading expected to begin within 30 days of issuance, pending approval. Moelis & Company and Cantor are serving as joint lead bookrunners.
The Saylor playbook, Ethereum edition
Bitmine is explicitly running a version of the financing model that Michael Saylor’s Strategy (formerly MicroStrategy) popularized for Bitcoin. The difference: Bitmine’s treasury obsession is Ethereum.
The company currently holds approximately 5.42 million ETH. At a price of roughly $2,003 per ETH, that stash is worth around $10.8 billion. Bitmine also holds 203 BTC and $446 million in cash.
Those 5.42 million tokens represent approximately 4.5% of the total ETH supply, putting Bitmine close to its self-described “Alchemy of 5%” vision, which targets holding a full 5% of all Ethereum in existence. The proceeds from this preferred offering would be directed primarily toward acquiring additional ETH, enhancing staking infrastructure through Bitmine’s MAVAN platform, and supporting related initiatives.
Bitmine has completed a full pivot from its origins as a Bitcoin mining company to something that looks more like an Ethereum treasury management firm. The MAVAN platform is dedicated to Ethereum staking infrastructure, which gives the company a way to generate yield on its massive ETH position.
The fine print on that 9.5% yield
The 9.5% annual rate is payable weekly in cash, subject to declaration by the board. If Bitmine fails to pay dividends on time, unpaid amounts compound at an increasing rate that starts at an additional 5 basis points and climbs to a maximum of 15%.
By issuing preferred shares, Bitmine avoids directly diluting existing common shareholders in the immediate term. BMNR common stock has declined nearly 50% over the past six months, which means issuing new common stock at these prices would have been significantly more painful for existing holders.
The offering was registered under a pre-existing SEC shelf registration.
What this means for investors
Bitmine’s ability to sustain those weekly dividend payments depends heavily on the price of Ethereum and the yield generated through its staking operations. If ETH enters a prolonged downturn, the company’s $10.8 billion in Ethereum holdings could shrink dramatically, potentially straining its capacity to service preferred dividends alongside operational costs.
Investors considering BMNP should pay close attention to Bitmine’s staking yields on the MAVAN platform, quarterly cash flow statements, and any changes in the ETH position size. The gap between the 9.5% dividend obligation and the actual yield generated by staking will determine whether this preferred stock becomes a reliable income vehicle.
