BitMine Immersion Technologies (BMNR), an Ethereum treasury company led by Fundstrat co-founder Tom Lee, is borrowing a page from Strategy’s funding playbook and launching a $300 million preferred stock offering as cryptocurrency treasury companies look for new ways to secure funding.
According to a Wednesday filing with the U.S. Securities and Exchange Commission (SEC), the company is offering 3 million shares of its Series A perpetual preferred stock at a stated value of $100 per share. The securities have an annual dividend rate of 9.5%, and dividends are paid weekly in cash if declared by the company’s board of directors.
The preferred shares will be listed on the New York Stock Exchange (NYSE) under the symbol BMNP, subject to approval, BitMine said.
The offering comes as digital asset treasury companies, recently pressured by falling cryptocurrency prices, explore new sources of funding. Strategy (MSTR), the largest corporate holder of bitcoin, introduced several classes of preferred shares. Bitcoin treasury Strive (ASST) also issued dividend-paying SATA preferred shares.
Bitmine intends to incorporate that manual into its Ethereum treasury strategy, according to the document.
The company has been among the most aggressive buyers in the sector, amassing more than 5.3 million ETH worth around $10 billion and controlling around 4.5% of Ethereum’s circulating supply over the past year. That ETH bet currently has an estimated unrealized loss of $9 billion, as ETH prices fell below $1,800 from around $5,000 in October.
The company can redeem Bitmine preferred shares at premiums ranging from 10% to 0%, depending on when the redemption occurs. Holders will also have repurchase rights if certain fundamental corporate changes occur. The filing does not specify how Bitmine intends to use the proceeds.
The timing is notable given the growing pressure on Strategy’s preferred equity financing model. The company’s STRC preferred stock fell 5% below its $100 face value on Wednesday as investors debate whether the company can comfortably maintain its dividend payments as bitcoin prices fall. Strive’s SATA also fell below $97, trading 3% below its current value, underscoring the pressure on the funding model for digital asset treasuries.
