BitMine Immersion Technologies (BMNR), an Ethereum treasury company led by Fundstrat co-founder Tom Lee, is borrowing a page from Strategy’s financing playbook and launching a $300 million preferred stock offering as crypto treasury firms search for new ways to secure funding.
According to a Wednesday filing with the U.S. Securities and Exchange Commission (SEC), the company is offering 3 million shares of its Series A Perpetual Preferred Stock at a stated value of $100 per share. The securities carry a 9.5% annual dividend rate, with dividends paid weekly in cash if declared by the company’s board.
The preferred shares will be listed on the New York Stock Exchange (NYSE) under the ticker BMNP, subject to approval, BitMine said.
The offering comes as digital asset treasury firms, recently under pressure from the downturn in crypto prices, explore new funding sources. Strategy (MSTR), the largest corporate holder of bitcoin, introduced various classes of preferred equities. Bitcoin treasury peers Strive (ASST) and Metaplanet also issued dividend-paying preferred stocks.
Bitmine is aiming to bring that playbook to its Ethereum treasury strategy, according to the filing.
The firm has been among the most aggressive buyers in the sector, accumulating more than 5.3 million ETH worth roughly $10 billion and controlling about 4.5% of Ethereum’s circulating supply over the past year. That ETH bet is currently sitting at an estimated $9 billion unrealized loss as ETH prices fell below $1,800 from around $5,000 in October.
Bitmine’s preferred stock can be redeemed by the company at premiums ranging from 10% to 0% depending on when the redemption occurs. Holders will also have repurchase rights if certain fundamental corporate changes occur. The filing did not specify how BitMine intends to use the proceeds.
The timing is notable given the growing pressure on Strategy’s preferred equity funding model. The firm’s STRC preferred stock fell 5% below its $100 par value on Wednesday as investors debate whether the company can comfortably maintain its dividend payments while bitcoin prices slide.
Executive Summary (TL;DR)
Tom Lee’s BitMine is attempting to mask unrealized ETH losses with traditional finance instruments, but the 9.5% dividend demand creates a structural conflict between treasury maintenance and shareholder returns that cannot be perpetually sustained.
The Core Friction
This preferred stock offering isn’t about growth—it’s about survival. BitMine’s $1B unrealized loss on its 5.3M ETH position has created a liquidity crisis, forcing them to adopt MicroStrategy’s playbook of using equity markets to fund operations. The 9.5% dividend requirement is particularly telling; it represents an admission that their direct ETH yield generation has failed, necessitating external capital to maintain shareholder confidence. The weekly dividend structure suggests immediate cash needs, not long-term planning.
Market Impact & Chain Reaction
Short-term
The offering will temporarily relieve BitMine’s liquidity constraints but creates immediate pressure on their ETH holdings. To service the $28.5M annual dividend obligation, they may be forced into ETH sales at inopportune times, potentially triggering a downward price spiral. The NYSE listing (BMNP) will attract traditional finance investors who have different risk tolerance and exit expectations than crypto natives.
Mid-term
This could initiate a wave of similar preferred stock offerings from other struggling crypto treasuries like Strive and Metaplanet. However, as MicroStrategy’s STRC already shows (trading below par), the market is becoming skeptical of this model. The more significant impact will be accelerating the bifurcation between “real yield” crypto projects and treasury-dependent firms.
RichSilo Verdict
Smart money should monitor the discount rate on BitMine’s preferred shares as a leading indicator of market confidence in crypto treasury strategies. The ultimate question isn’t whether BitMine can raise capital, but whether they can maintain dividend payments without liquidating their core ETH position at a loss. This represents a critical stress test for the entire crypto treasury ecosystem.
