- Bitmine plans to raise up to $300 million through 3 million shares of 9.5% Series A Perpetual Preferred Stock.
- Proceeds targeted for additional ETH acquisitions, staking expansion via MAVAN, and general corporate purposes.
- Company holds over 4.5% of ETH supply with ~$9 billion in unrealized losses as prices hover near recent lows.
- Move mirrors Michael Saylor’s Strategy Bitcoin treasury approach but applied to Ethereum.
Bitmine Immersion Technologies (NYSE: BMNR), the aggressive Ethereum treasury company associated with Tom Lee, has filed to offer 3 million shares of its Series A perpetual preferred stock at a $100 stated value, aiming to raise up to $300 million. The securities carry a 9.5% annual dividend, payable weekly in cash if declared by the board.
The offering comes at a challenging time for the firm’s Ethereum-heavy balance sheet. Bitmine has accumulated more than 5.3 million ETH — representing roughly 4.5% of the circulating supply — as part of its “Alchemy of 5%” initiative. However, with Ether trading well below the levels at which much of the stack was acquired (previously around $5,000 and now near $1,800), the position sits on approximately $9 billion in unrealized losses.
In its announcement, Bitmine stated that net proceeds will support general corporate purposes, including further ETH purchases, expansion of staking and validator infrastructure through its Made-in-America Validator Network (MAVAN), working capital, strategic investments, and potential common stock repurchases.
https://www.sec.gov/Archives/edgar/data/1829311/000149315226027136/form424b5.htm
This structure draws clear parallels to Strategy’s (formerly MicroStrategy) preferred stock and convertible note offerings used to amplify its Bitcoin holdings. By offering attractive yields backed by staking income, Bitmine seeks to attract income-focused investors while doubling down on its Ethereum conviction.
Market reaction and risks remain key concerns. Ethereum’s price weakness has pressured Bitmine’s valuation, and sustaining high dividend payouts on perpetual preferreds will depend on staking yields and potential ETH appreciation. Critics note the leverage inherent in such treasury strategies, where volatility can amplify both gains and losses.
In a filing and press materials, the company emphasized its commitment to Ethereum as a primary reserve asset, leveraging staking and DeFi mechanisms for yield generation.
Industry observers see this as a test case for corporate crypto treasuries beyond Bitcoin. While Bitcoin treasury plays have gained traction, Ethereum-focused strategies face additional smart contract and network-specific risks. Balanced views from analysts highlight the potential for long-term upside if Ethereum’s ecosystem grows, alongside near-term liquidity and mark-to-market pressures.
Disclaimer: This article is for informational purposes only and does not constitute advice of any kind. Readers should conduct their own research before making any decisions.
