#BitminePlans300MPreferredStockOffering Bitmine Plans $300M Preferred Stock Offering to Double Down on Ethereum Treasury Strategy

Las Vegas, June 5, 2026 – Bitmine Immersion Technologies (NYSE American: BMNR), the largest corporate holder of Ethereum, has filed a preliminary prospectus with the U.S. Securities and Exchange Commission to raise up to $300 million through a Series A Perpetual Preferred Stock offering. The move comes as crypto treasury firms face renewed pressure from declining digital asset prices and seek alternative sources of capital.
Offering Details at a Glance
Term Detail
Offering Size Up to $300 million
Number of Shares 3 million shares
Stated Value per Share $100
Dividend Rate 9.50% annual cumulative
Payment Frequency Weekly, in cash
Expected Ticker (NYSE) BMNP
Joint Lead Bookrunners Moelis & Company, Cantor Fitzgerald
Listing Timeline Within 30 days of first issuance
The preferred stock is non-convertible and does not provide holders with common equity ownership in the company. Unpaid dividends will accrue compounded interest starting at 9.55%, increasing by 5 basis points per week up to a maximum of 15%. Bitmine can redeem the shares at 110% of stated value during the first 18 months, at 105% from 18 months to three years, and at par after that.
Who Is Bitmine Immersion Technologies?
Bitmine, led by Fundstrat co-founder Tom Lee, operates as a blockchain technology company primarily in the United States with a market capitalization of approximately $12.1 billion. The company operates its own Bitcoin mining rigs using immersion cooling technology—a technique where computers are submerged in specialized dielectric fluid to reduce heat stress and improve energy efficiency. In addition to self-mining Bitcoin, the company offers hosted mining services, mining equipment sales, and advisory on crypto treasury management.
In June 2025, Bitmine completed an $18 million public offering of common stock at $8 per share and uplisted to the NYSE American. The company has since become one of the most widely traded stocks in the U.S., with average daily dollar volume of $1.6 billion. Shareholders have also approved a sharp increase in authorized shares from 500 million to 50 billion, designed to support additional ATM issuance and further crypto purchases.
A Massive Ethereum Bet—And an Even Bigger Paper Loss
Bitmine has amassed an enormous Ethereum position through aggressive accumulation. As disclosed in its latest filings, the company holds:
Metric Amount
Total ETH Holdings 5,416,901 ETH
% of Circulating ETH Supply ~4.5%
Staked ETH ~3.33 million ETH (~68% of holdings)
Average Acquisition Price ~$3,793 per ETH
Current Market Value (at ~$1,773/ETH) ~$9.6 billion
Total Invested Cost $18.83 billion
Unrealized Loss ~$9.2 billion
ETH reached an all-time high of $4,946 in August 2025 and has since fallen about 64%. The company reported a net loss of **$3.82 billion** for the quarter ended February 28, 2026, driven almost entirely by $3.78 billion in unrealized losses on its digital asset portfolio under mark-to-market accounting. For the first six months of the fiscal year, unrealized losses totaled $9.023 billion.
Despite the accounting hits, Bitmine's operating performance has shown growth. Quarterly revenue rose to **$11.04 million**, driven primarily by staking income of roughly $10 million—a more than sevenfold increase from the prior year. With about 68% of its ETH staked, the company projects annualized staking revenue of approximately $212 million at roughly a 3% yearly yield.
How Proceeds May Be Used
Bitmine has indicated that net proceeds from the offering may be directed toward:
· Purchasing additional Ethereum (ETH)
· Expanding staking and validator operations through MAVAN, its institutional Ethereum staking platform launched in April 2026
· Repurchasing common shares
· General corporate purposes
The 9.5% annual dividend on $300 million equates to roughly **$28.5 million per year**. Bitmine intends to fund the dividend primarily through staking yields generated by MAVAN, its validator platform that manages most of the company's ETH.
Market Reactions and Criticism
Peter Schiff, longtime gold advocate and crypto critic, argued on social media that raising capital at a 9.5% yield to buy more Ethereum is "borrowing a page from Saylor's Ponzi playbook". Schiff has made similar arguments about Strategy's preferred stock structure, warning of potential long-term risks.
"Raising capital at a 9.5% yield to buy more Ethereum is unlikely to work after the asset's sharp decline."
— Peter Schiff, Economist
Tom Lee, Bitmine Chairman, has consistently downplayed the ETH losses, framing them as paper figures that recover with the market. Lee remains constructive on Ethereum over the long term, arguing the token's market price has not caught up with improving network fundamentals and that the broader crypto market may still be early in a new growth cycle.
Strategy (MSTR), the largest corporate holder of Bitcoin, has pioneered this preferred-equity model. Strategy's STRC program has grown to approximately **$10.5 billion** in outstanding notional value since its IPO in July 2025. However, Strategy's STRC preferred shares traded 5% below their $100 par value on Wednesday as investors weighed whether the company can comfortably sustain dividend payments amid falling crypto prices.
🔍 Key Risks for Investors
Bitmine has highlighted several risk factors in its filings:
1. Dividend Coverage Gap: Ethereum network staking yields currently sit below the 9.5% BMNP dividend rate. The company may need ETH price appreciation or expanded staking scale to fully cover the obligation without tapping cash reserves.
2. ETH Price Sensitivity: The preferred offering is closely tied to investor confidence in Bitmine's Ethereum treasury model. Every price drop further widens the $9.2 billion unrealized loss position.
3. Regulatory and Counterparty Risks: The company's performance remains connected to Ether's price, staking economics, regulation, and counterparty risk tied to digital asset activities.
4. Fixed Dividend Obligation: Unlike common equity dilution, preferred dividends must be paid regularly, creating an ongoing cash obligation that shifts the conversation from dilution risk to whether the company's revenue can consistently cover the cost of this capital.
Snapshot: Bitmine vs. Strategy
Bitmine (BMNR) Strategy (MSTR)
Target Asset Ethereum (ETH) Bitcoin (BTC)
Preferred Ticker BMNP (proposed) STRC
Dividend Rate 9.5% fixed 11.5% (variable structure)
Staking Yield ~3% on staked ETH Not applicable
Holdings 5.4M ETH (~4.5% supply) ~843K BTC
Unrealized Loss ~$9.2B Varies with BTC price
What's Next?
The preferred shares are expected to begin trading on the New York Stock Exchange under ticker BMNP within 30 days of the first issuance, subject to approval. Investors tracking the deal should monitor subsequent SEC filings for final pricing, use-of-proceeds details, and market reaction.
The coming weeks will test whether investors are willing to fund an Ethereum bet at a steep yield while the underlying asset sits near multi-month lows. The answer may reveal how much appetite remains for the treasury model that Michael Saylor made famous—now adapted for Ethereum.