Tom Lee's affiliated Bitmine plans to issue 9.5% dividend preferred shares to raise $300 million.

It appears to mimic Strategy's financing innovation on the surface, but behind it is Ethereum's largest long position floating loss approaching $9 billion.
ETH drops below $1,800, and Bitmine's stock price falls to the lowest since the shift to crypto.
At this point, issuing preferred shares essentially replaces debt or adds margin with a higher cost (9.5% dividend) to avoid liquidation.
But preferred shares are not risk-free funds—if ETH continues to decline, the dividend payment pressure will backfire on cash flow.
This is very similar to the logic of Three Arrows Capital borrowing BTC at high interest in 2022: in a leveraged bull market, institutions add positions with low-interest debt; in a bear market, high-interest financing is the last lifeline.
Bitmine's preferred stock structure essentially shifts leverage risk from banks to retail and institutional investors.
Market funds are flowing from crypto to AI and IPOs, ETH ETF outflows continue, and the market predicts a 71% chance of ETH dropping to $1,500.
Bitmine's financing move is not a bottom-fishing signal but a structural sign that the leverage game is reaching its end.
The risk is: if ETH falls below $1,500, Bitmine's preferred shares could become "priority zero."
Retail investors chasing these high-yield products should beware of principal loss.
$eth #btc #defi #etf #ai