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Key Takeaways
- BitMine plans to sell 3 million shares of 9.50% Series A Perpetual Preferred Stock at $100 each, targeting $300 million to fund Ethereum purchases, staking, and validator expansion via an entity called MAVAN.
- The company holds more than 5 million ETH, much of it staked, with unrealized losses exceeding $8 billion as Ethereum traded near $1,765, well below BitMine’s average purchase price.
- The financing structure mirrors Michael Saylor’s Strategy model, though BitMine’s 9.50% dividend rate is lower than the 13% rate on Strive’s comparable SATA preferred offering.
BitMine Immersion Technologies announced plans to sell 3 million shares of 9.50% Series A Perpetual Preferred Stock at $100 each, targeting $300 million to fund additional Ethereum purchases, staking activity, and validator expansion. The company holds unrealized losses exceeding $8 billion on its existing ETH holdings, according to CryptoQuant data. Ethereum was trading at $1,765 at the time of reporting, down nearly 5% over 24 hours, per BeInCrypto Markets data.
BitMine Preferred Stock Carries $100 Stated Amount and 9.50% Dividend, Set to Trade on NYSE as BMNP
The financing structure BitMine is pursuing closely mirrors the capital markets model used by Michael Saylor’s Strategy, which has deployed its preferred stock offering, ticker STRC and branded “Stretch,” to fund ongoing Bitcoin purchases.
Digital asset treasury firms following this model raise capital in public markets and deploy the proceeds directly into token acquisitions. BitMine’s filing replicates that approach, with the preferred stock carrying a $100 stated amount per share and a 9.50% dividend rate. The shares are expected to trade on the NYSE under the ticker BMNP, pending exchange approval. Moelis and Company and Cantor Fitzgerald are serving as joint lead bookrunners on the offering.
BitMine is not the only firm applying a variation of this structure. Bitcoin treasury peer Strive, which trades under the ticker ASST, also has a dividend-paying preferred stock offering under the ticker SATA, carrying a 13% dividend rate, making BitMine’s 9.50% offering the lower-yielding of the two comparable instruments currently on the market.
BitMine Holds More Than 5 Million ETH, Much of It Staked, With Average Purchase Price Above Current Market Levels
BitMine has accumulated more than 5 million ETH through an aggressive buying strategy, much of which is staked. With Ethereum trading at $1,765 at the time of reporting, the company’s position is deeply underwater relative to its average purchase price. CryptoQuant data places the company’s unrealized losses at more than $8 billion. Chairman Tom Lee has previously said publicly that the losses are paper figures that will recover as market prices improve.
The proceeds from the preferred stock offering are intended to fund additional ETH purchases, staking operations, and validator expansion through an entity identified in the filing as MAVAN, which was not further described. The company also flagged working capital needs and potential common stock buybacks as additional uses of proceeds, though the relative allocation across those purposes was not specified in the filing.
BitMine Sets 9.50% Dividend Rate as Ethereum Trades Near Multi-Month Lows
The timing of the offering coincides with a broader retreat in crypto prices. Ethereum has been trading near multi-month lows, and BitMine’s preferred stock carries a 9.50% dividend rate. BitMine did not disclose a specific rationale for the dividend rate in its filing.
The company has not disclosed a target timeline for the offering or the total amount it expects to raise beyond the $300 million maximum. BitMine’s existing ETH holdings, scale of staking operations, and the yield on the preferred offering are detailed in the filing but no further financial projections were provided.
