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- Bitmine is raising $300M via a 9.5% yield-focused preferred stock tied to Ethereum strategy.
- Funds will support ETH accumulation, staking expansion, and corporate operations.
- The move mirrors Strategy’s crypto financing model amid falling Ethereum prices.
Bitmine Immersion Technologies is moving deeper into its Ethereum strategy with a $300 million perpetual preferred stock offering, adopting a financing model inspired by Strategy’s Bitcoin playbook. The move comes as Ethereum faces renewed price weakness, even as corporate treasury adoption continues to expand.
A $300M Bet on Ethereum Income Strategy
Bitmine plans to issue 3 million shares of its 9.5% Series A perpetual preferred stock at $100 each, with trading expected under the ticker BMNP within 30 days of issuance. The structure blends features of equity and fixed-income instruments, offering investors steady dividend payments rather than direct exposure to company growth.
Each share pays $9.50 annually in dividends, distributed weekly, creating a yield-focused product aimed at income-seeking investors. The company intends to fund these payouts primarily through revenue generated from staking its Ethereum holdings, reinforcing its shift toward an Ethereum-centric treasury model.
Borrowing From Strategy’s Crypto Financing Blueprint
The structure closely mirrors Strategy’s approach to digital asset financing, particularly its Stretch (STRC) perpetual preferred stock launched in 2025. That product, which uses a variable dividend rate, has grown rapidly and now represents a major force in the preferred stock market.
Strategy’s model has attracted significant retail interest, with reports indicating that around 80% of STRC holders are individual investors. Bitmine appears to be targeting similar demand by offering a fixed-yield alternative tied indirectly to Ethereum exposure rather than Bitcoin.
Expanding Ethereum Holdings Despite Heavy Paper Losses
Bitmine says proceeds from the offering will support general operations, including additional Ethereum purchases, staking expansion through its validator network initiative, and potential share buybacks. The firm currently holds roughly 4.49% of total ETH supply and is nearing its goal of controlling 5%.
Its Ethereum position includes about 4.7 million staked ETH valued at approximately $8.3 billion. However, the company is also facing significant unrealized losses estimated near $9 billion as ETH prices have weakened.
The timing of the offering comes as Ethereum trades under pressure, recently sliding more than 12% in a week to hit its lowest level in over a year. Bitmine leadership, however, remains optimistic about the network’s long-term fundamentals.
Chairman Tom Lee has argued that current prices do not reflect Ethereum’s underlying growth potential, describing the market as still in an early “crypto recovery” phase. Meanwhile, Bitmine shares have also come under pressure, dropping to their lowest level since the company pivoted toward Ethereum in mid-2025.
Also Read: Bitmine Slows ETH Buying After Massive 100,000 Ether Accumulation Spree
Bitmine’s $300 million preferred stock plan highlights a growing trend: crypto-native firms using traditional fixed-income structures to scale digital asset strategies. While investor appetite for yield may support the offering, the move also underscores the tension between long-term Ethereum accumulation and short-term market volatility.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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