Bitmine Files Preferred Stock Offering with 9.5% Yield to Buy More Ethereum

Bitmine Immersion Technologies announced plans to raise $300 million by issuing preferred stock, intending to use the funds primarily to acquire additional Ethereum.

The company filed on June 3 to issue 3 million shares of 9.50% Series A Perpetual Preferred Stock at $100 per share, paying cumulative weekly cash dividends at a fixed annual rate of 9.5%.

Bitmine has applied to list the preferred shares on the NYSE under ticker BMNP, with trading expected within 30 days of approval. Moelis & Company and Cantor are joint lead bookrunners.

The move mirrors the financing model popularized by Michael Saylor's Strategy (formerly MicroStrategy) for Bitcoin, but Bitmine's focus is Ethereum. The company holds approximately 5.42 million ETH, worth around $10.8 billion at current prices, plus 203 BTC and $446 million in cash.

Those 5.42 million tokens represent about 4.5% of the total ETH supply, nearing Bitmine's goal of holding 5% of all Ethereum. Proceeds will also enhance staking infrastructure through Bitmine's MAVAN platform.

The 9.5% dividend is payable weekly, subject to board declaration. Missed payments compound, starting at an additional 5 basis points and climbing to 15%.

Investors should monitor Bitmine's staking yields, cash flow, and ETH position size to assess the sustainability of the dividend.