Bitmine Immersion Technologies has filed with the U.S. Securities and Exchange Commission to launch a new preferred stock offering, as Ethereum-focused treasury firms seek fresh capital during a prolonged downturn in digital asset prices.
The company said in its Wednesday filing that it plans to offer 3 million shares of Series A perpetual preferred stock at a stated value of $100 per share. The securities carry a fixed annual dividend rate of 9.50%, with payments scheduled weekly in arrears when declared. If dividends remain unpaid, they will accrue at a compounded rate that starts at 9.55% and increases incrementally, with a cap at 15%.
Bitmine has applied to list the shares on the New York Stock Exchange under the ticker BMNP. The company indicated that trading could begin within 30 days after the initial issuance, subject to approval. Moelis & Company and Cantor will act as joint lead bookrunners for the offering.
Strategy playbook extends to Ethereum treasury firms
The structure of the offering mirrors financing strategies introduced by Strategy, a major corporate holder of bitcoin. Strategy’s STRC preferred stock product, which offers a higher dividend rate of 11.5%, has attracted investors who seek steady income alongside indirect crypto exposure.
Bitmine’s move reflects a broader shift among digital asset treasury firms. Companies in the sector have explored dividend-paying instruments to secure funding without direct asset sales. Strive, another treasury firm, has also issued similar preferred shares under its SATA program.
Bitmine stated that proceeds from the offering will support general corporate purposes. These may include additional purchases of ether and expansion of staking and validator infrastructure. The company also referenced its MAVAN initiative as part of its infrastructure growth plans.
Expanding holdings despite mounting losses
The capital raise comes as Bitmine continues to expand its Ethereum position. On June 1, the company disclosed the acquisition of 26,497 ETH, which brought its total holdings to more than 5.4 million ETH. That position represents about 4.5% of Ethereum’s circulating supply based on available data.
The aggressive accumulation strategy has exposed the firm to significant unrealized losses. Estimates place those losses at roughly $9 billion as Ethereum prices remain under pressure. Ether has fallen below $1,800, compared with levels near $5,000 in October of the previous year.
Market data shows that the asset declined 4.16% over a 24-hour period and about 32% over the past year. The company’s stock has also reflected this pressure. Bitmine shares fell 5.95% to close at $16.9 on Wednesday, according to Google Finance data.
Dividend model faces scrutiny across the sector
The timing of the offering has drawn attention as similar funding models face pressure. Strategy’s STRC preferred shares recently traded below their $100 par value, which has raised questions about the sustainability of dividend obligations during periods of falling crypto prices. Strive’s SATA shares have also slipped below par, which signals broader investor caution.
Bitmine’s preferred shares include redemption features that allow the company to buy back stock at premiums that decline over time. Investors also hold repurchase rights if certain corporate changes occur. These mechanisms provide some protection but do not eliminate market risk tied to underlying crypto exposure.
The company’s approach differs in its focus on Ethereum rather than bitcoin. Some market participants have pointed to Ethereum’s potential for on-chain yield generation as a factor that could support dividend payments. However, the scale of Bitmine’s current unrealized losses remains a central concern.
Capital strategy tests investor appetite
Bitmine’s plan could raise up to $300 million if fully subscribed. The company has not provided detailed allocation targets beyond general corporate use, though prior statements indicate a focus on increasing ETH exposure and scaling staking operations.
The offering arrives at a time when crypto treasury firms face limited financing options. Declines in digital asset prices have reduced the value of existing holdings and complicated equity-based fundraising. Preferred stock structures offer a way to attract income-focused investors without immediate dilution tied to common shares.
The model depends on the issuer’s ability to maintain dividend payments. Any sustained weakness in crypto markets could place additional strain on cash flow, particularly for firms with large unrealized losses.
Bitmine’s continued accumulation of ether signals confidence in its long-term strategy. The preferred stock offering will test whether investors share that outlook under current market conditions.
Tanya Petrusenko
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