BitMine Seeks Up to $300M via 9.5% Preferred Stock to Build Out ETH Treasury

BitMine Immersion Technologies (NYSE: BMNR) on Wednesday filed a preliminary prospectus with the SEC to raise up to $300 million through a new Series A Perpetual Preferred Stock offering that carries a 9.5% cumulative annual dividend, paid weekly in cash. The filing applies to up to 3 million shares with a $100 stated value per share, according to the prospectus supplement dated June 3 and posted on the SEC's EDGAR system under accession number 000149315226027136. The preferred shares are expected to list on the New York Stock Exchange under ticker BMNP within 30 days of the first issuance. Moelis & Company and Cantor are serving as joint lead bookrunners. Terms of the BMNP preferred The preferred stock is nonconvertible and does not provide holders with common equity ownership in the company. Dividends accrue on the $100 face amount and compound if unpaid. If dividends fall into arrears, a default penalty applies at the regular rate plus 5 basis points per week, capped at 15%. BitMine can redeem the shares at 110% of stated value during the first 18 months, at 105% from 18 months to three years, and at par after that. The prospectus also provides repurchase rights for holders if certain fundamental corporate changes occur. The structure mirrors the preferred-dividend approach Strategy pioneered for its Bitcoin treasury. Strategy's comparable instrument, STRC, carries an 11.5% annual dividend and has raised roughly $10.5 billion since its July 2025 IPO. Strive and Metaplanet have issued similar structures. ETH treasury size and the unrealized loss BitMine, led by Fundstrat cofounder Tom Lee, is positioning the same capital-markets template around an Ethereum-focused corporate treasury. The company reports holdings of 5,416,901 ETH, the largest corporate Ethereum position tracked by CoinGecko. At a price of roughly $1,773, the ETH is valued at about $9.6 billion, representing around 4.5% of Ethereum's circulating supply of 120.7 million coins. The prospectus puts BitMine's total invested cost in ETH at $18.83 billion, implying an unrealized loss of about $9.2 billion. ETH reached an all-time high of $4,946 in August 2025 and has since fallen about 64%. BitMine's broader treasury includes 203 BTC, a $200 million stake in Beast Industries, a $97 million stake in Eightco Holdings (Nasdaq: ORBS), and $446 million in cash. A June 2 investor presentation filed as an 8-K pegged total treasury assets at roughly $12.3 billion as of May 26. How the dividend may be funded A 9.5% annual dividend on $300 million equates to roughly $28.5 million per year. BitMine says it intends to fund the dividend primarily through staking yields generated by MAVAN, its validator platform that manages most of the company's ETH. The prospectus does not disclose MAVAN's current yield rate. With Ethereum network staking yields currently below the 9.5% BMNP dividend rate, the company may need ETH price appreciation or expanded staking scale to fully cover the obligation without tapping cash. The gap between realized staking yield and the fixed dividend commitment is a central risk point for investors evaluating the structure. Market criticism and capital-structure rationale Gold advocate and longtime crypto critic Peter Schiff argued on X that raising capital at a 9.5% yield to buy more Ethereum is unlikely to work after the asset's sharp decline. Schiff has made similar arguments about Strategy's STRC, warning of a potential "death-spiral" dynamic where falling asset prices force issuers to offer progressively higher yields to attract capital, raising the cost burden on treasuries already showing large paper losses. BitMine's common stock has fallen roughly 50% from recent highs, increasing the dilution cost of equity fundraising. The preferred-stock approach is designed to bring in dollar-denominated capital at a fixed yield without issuing additional common shares. Strategy's STRC program demonstrated the ability to raise large sums against a volatile underlying asset, collecting about $10.5 billion over roughly 10 months. Whether the same playbook translates to Ethereum, given different staking economics, a deeper recent drawdown, and BitMine's roughly $9.2 billion unrealized loss versus cost basis, is the question now being tested by the BMNP offering. The prospectus does not specify a closing date for the deal.