Key facts
- Bitmine Immersion Technologies is launching a $300 million preferred stock offering.
- The Series A Perpetual Preferred Stock will trade on the NYSE under ticker BMNP.
- The shares offer a fixed 9.5% annual dividend, paid weekly.
- Dividends will be funded by revenue from staked Ether holdings.
- The offering follows a model popularized by Michael Saylor's Strategy.
Bitmine Immersion Technologies is launching a $300 million preferred stock offering to fund its Ethereum treasury strategy, adopting a model popularized by Michael Saylor's bitcoin company, Strategy. The company filed with the SEC to offer 3 million shares of Series A Perpetual Preferred Stock at $100 per share, which will trade on the NYSE under the ticker BMNP. Each share will pay a fixed 9.5% annual dividend, funded by revenue from Bitmine's staked Ether holdings. This strategy places preferred shares between stocks and bonds, offering regular payments rather than direct company growth bets. Strategy's similar preferred stock, STRC, has grown to an $8.5 billion market cap, with about 80% of its holders being retail investors. Strive has also issued dividend-paying preferred stock. Bitmine currently holds over 5.3 million ETH, valued at approximately $10 billion, but faces an estimated $9 billion unrealized loss as Ether prices have declined. The company aims to use the offering proceeds for general corporate purposes, including acquiring more ETH, expanding staking infrastructure, and repurchasing common stock. The move comes as Strategy's STRC and Strive's SATA have recently fallen below their par values, raising questions about the sustainability of dividend payments amid falling crypto prices. Bitmine's common stock dropped nearly 6% on Wednesday.