Summary
- BitMine raised approximately $274 million by issuing 3.5 million preferred shares at $80 each, excluding fees.
- The funds will be allocated for Ethereum acquisitions, staking infrastructure development, and potential stock buybacks.
- The preferred shares will offer a 9.5% annual dividend and are anticipated to be listed on the NYSE under the ticker BMNP.
BitMine Immersion Technologies, a prominent firm focused on Ethereum treasury management, announced a larger-than-expected preferred stock offering on Friday, aiming to secure around $273.8 million as part of its strategy to capitalize on Ethereum's increasing significance in institutional finance.
The company, trading under the ticker BMNR, sold 3.5 million shares of newly issued Series A Perpetual Preferred Stock at a price of $80 per share—an increase from the originally planned 3 million shares. The transaction is expected to finalize on June 10, subject to standard conditions. Moelis & Company and Cantor acted as joint lead bookrunners for the offering.
These preferred shares will feature a 9.50% annual dividend rate. Importantly, the liquidation preference—what investors would receive in case of a liquidation—will adjust based on current market prices, though it will not drop below $100 per share. The company has applied for the shares to be listed on the NYSE with the ticker BMNP.
The funds raised through this offering may be utilized to purchase more Ethereum and other cryptocurrencies, support staking infrastructure via its newly established MAVAN validator network, or conduct buybacks of common stock.
Investing in this offering carries typical risks associated with crypto-related investments. The fixed nature of BitMine's preferred dividend obligations means that a prolonged downturn in the digital asset market could strain the company’s financial health, even as it aims to draw in institutional investors with its innovative treasury model.
Last summer, BitMine shifted from Bitcoin mining to accumulating Ethereum treasuries, amassing billions in ETH and contributing to a rally in both the cryptocurrency and its shares, aided by the notable appointment of investor Tom Lee as chairman. (Disclosure: Lee is an investor in Dastan, the parent company of the editorially independent Decrypt.)
The firm now holds more than $8.6 billion in Ethereum, establishing it as the dominant player among ETH-focused treasury firms. However, Ethereum's decline from an all-time high of nearly $5,000 last August to a recent value of $1,591—a drop exceeding 67%—has left the firm’s holdings over $10 billion underwater, according to data from DropsTab.
BitMine's stock has also seen significant declines, recently trading at $16—reflecting a drop of over 10.5% on the day and a 41% decrease since the beginning of 2026.
The introduction of BitMine’s preferred shares mirrors the success of Strategy’s recent offering of STRC shares, which has facilitated billions in Bitcoin purchases this year.
Strategy, the largest Bitcoin treasury firm with over $51 billion in BTC, has also faced its own challenges, reporting a paper loss of around $12 billion and a 36% decline in its stock price over the last month, now trading at approximately $118.