BitMine Immersion Technologies priced an upsized offering of 3.5 million shares of 9.50% Series A Perpetual Preferred Stock at $80 per share, expecting to raise approximately $273.8 million. Funds will acquire more Ethereum, expand staking infrastructure, and cover general working capital.
BitMine Immersion Technologies (BMNR) has priced an upsized offering of 3.5 million shares of its 9.50% Series A Perpetual Preferred Stock at $80 per share, raising approximately $273.8 million in net proceeds. This offering, an increase from the initially planned 3 million shares, is set to close on June 10, 2026. The company intends to use the funds primarily to acquire more Ethereum (ETH), expand its staking and validator infrastructure through its MAVAN initiative, and for general working capital.
The preferred stock carries a 9.50% cumulative annual dividend and BitMine has applied to list it on the New York Stock Exchange (NYSE) under the ticker BMNP, with trading anticipated to commence within 30 days of issuance. This strategy draws parallels to Bitcoin treasury models but highlights ETH's staking yield as a key differentiator. The company's chairman, Thomas Lee, argues that ETH treasury firms can leverage staking yields to fund operations and ecosystem grants, providing a structural advantage over Bitcoin-focused entities.
However, the strategy carries risks. The ETH staking yield, currently around 3% to 5% annualized, is insufficient on its own to cover the 9.50% preferred dividend, necessitating additional ETH acquisition. Furthermore, staking yields can fluctuate based on network conditions, and BitMine's stated goal of holding approximately 5% of Ethereum's total circulating supply represents a significant concentration risk. The company also retains legacy mining infrastructure and costs, indicating a substantial business model shift from mining to a staking treasury.
This offering allows BitMine to significantly expand its Ethereum holdings and staking operations, signaling a strategic shift towards a crypto-treasury model. However, the reliance on ETH staking yields to cover a higher preferred dividend rate presents notable financial risks.