BitMine’s $300M stock move tests confidence in ETH treasury bet

BitMine has moved to raise $300 million through a preferred stock sale as the Ethereum treasury firm turns to dividend-paying securities for fresh capital.

According to a Wednesday filing with the U.S. Securities and Exchange Commission, BitMine Immersion Technologies is offering 3 million shares of Series A Perpetual Preferred Stock at a stated value of $100 each. The company said the shares will carry a 9.5% annual dividend rate, with payments expected weekly in cash, subject to board approval.

The preferred stock is expected to trade on the New York Stock Exchange under the ticker BMNP, subject to listing approval, according to the filing. BitMine did not state how it plans to use the proceeds from the offering.

BitMine Follows Strategy’s Funding Path

The filing shows BitMine adopting a financing model already used by Strategy, the bitcoin treasury company formerly known as MicroStrategy. Strategy has issued several classes of preferred equity to raise capital outside common stock sales and debt markets.

Other crypto treasury firms have also moved in the same direction. Strive and Metaplanet have issued dividend-paying preferred shares as digital asset treasury companies look for capital while crypto prices remain under pressure.

BitMine, led by Fundstrat co-founder Tom Lee, is applying that structure to an Ethereum-focused treasury strategy. The company has become one of the most aggressive ETH buyers in the sector, according to its recent disclosures.

Ethereum Treasury Faces Heavy Paper Loss

According to the company’s filing, BitMine has accumulated more than 5.3 million ETH, valued at about $10 billion. The filing said the holdings represent roughly 4.5% of Ethereum’s circulating supply.

The same filing showed BitMine’s Ethereum position carrying an estimated $9 billion unrealized loss after ETH fell from about $ 5,000 to below $ 1,800 in October. The company’s exposure makes the preferred stock sale closely tied to investor confidence in its Ethereum treasury model.

The preferred shares can be redeemed by BitMine at premiums that decline from 10% to 0%, depending on when the redemption takes place, according to the filing. Investors will also have repurchase rights if specific corporate changes occur.

Earlier ETH Purchase Lifted Holdings

As previously reported by crypto.news, BitMine bought 26,497 ETH over the past week, lifting its Ethereum holdings to 5.42 million tokens. The purchase moved the company closer to its stated 5% target for Ethereum supply.

BitMine said its crypto, cash, and “moonshots” holdings totaled $11.6 billion as of May 31. The company reported 5,416,901 ETH, 203 Bitcoin, $446 million in cash, a $180 million stake in Beast Industries, and a $93 million stake in Eightco Holdings.

The timing of BitMine’s preferred stock filing comes as Strategy’s own preferred equity model faces fresh scrutiny. STRC, one of Strategy’s preferred stocks, fell about 5% below its $100 par value on Wednesday.