BitMine Issues $300M Preferred Stock at 9.5% Yield, Mimicking Strategy's Funding Model
BitMine Immersion Technologies, the largest Ethereum treasury firm led by Fundstrat co-founder Tom Lee, has filed with the SEC to issue $300 million in Series A Perpetual Preferred Stock at $100 per share with a 9.5% annual dividend rate. The offering, listed under ticker BMNP on the NYSE pending approval, mirrors the financing strategy of Michael Saylor's Strategy, which has used preferred stock to fund bitcoin acquisitions. This move comes as crypto treasury firms face pressure from declining asset prices: BitMine holds over 5.3 million ETH (worth ~$10 billion) but faces an estimated $9 billion unrealized loss as ETH fell from $5,000 to below $1,800. The preferred shares include redemption premiums (10% to 0%) and repurchase rights upon corporate changes. However, the model faces scrutiny as Strategy's STRC preferred stock fell 5% below par and Strive's SATA dropped 3% below par, raising concerns about dividend sustainability amid market downturns.
Key facts
- BitMine files for $300M preferred stock offering at $100/share with 9.5% annual dividend.
- The offering copies Strategy's model of using preferred equity to fund crypto acquisitions.
- BitMine holds 5.3M ETH (~$10B) but faces ~$9B unrealized loss as ETH price fell from $5,000 to below $1,800.
- Strategy's STRC preferred stock fell 5% below $100 par, highlighting market pressure.
- Preferred shares include redemption premiums and repurchase rights on corporate changes.