Bitmine Plans $300M Preferred Stock Offering to Expand Ethereum Treasury Despite ETH Price Drop

TLDR

• Bitmine plans to issue 3M BMNP preferred shares at $100 each.
• The offering targets up to $300M in gross proceeds.
• BMNP carries a fixed 9.5% annual dividend paid weekly if declared.
• Bitmine holds about 5.3M to 5.42M ETH, near 4.5% of supply.
• Proceeds may fund ETH purchases, MAVAN staking infrastructure and buybacks.

Bitmine Immersion Technologies plans to raise up to $300 million through a perpetual preferred stock offering as the Ethereum-focused treasury company seeks more capital to expand its ETH holdings and staking infrastructure.

The company filed with the U.S. Securities and Exchange Commission to offer 3 million shares of its 9.5% Series A perpetual preferred stock at a stated value of $100 per share. The preferred shares are expected to trade under the ticker BMNP within 30 days of issuance, subject to approval.

Bitmine’s common stock, listed under BMNR, fell nearly 6% to $16.90 after the filing, reaching its lowest level since the company shifted its focus toward Ethereum in June 2025. The move comes as Ethereum trades near a 14-month low, after falling more than 12% over the past week to around $1,734 in early Thursday trading.

BMNP Preferred Stock Carries 9.5% Dividend

The BMNP preferred shares are structured as perpetual securities, meaning they do not have a maturity date. Each $100 preferred share carries a fixed 9.5% annual dividend rate, with payments expected weekly in cash if declared by Bitmine’s board.

If the full $300 million offering is sold, the annual dividend obligation would be about $28.5 million. That payment structure is central to the offering because Bitmine plans to use staking income from its Ether holdings to help fund the preferred dividends.

Preferred stock sits between common equity and debt in a company’s capital structure. Investors receive priority over common shareholders for dividends, but they generally do not participate in company growth in the same way as common stockholders.

The structure resembles financing tools used by Strategy, Michael Saylor’s Bitcoin treasury company. Strategy launched STRC, its Stretch perpetual preferred stock, in July 2025. Unlike Bitmine’s fixed 9.5% dividend, STRC uses a variable rate adjusted monthly to help keep its trading price near $100.

Ethereum Treasury Nears 5% Supply Target

Bitmine said proceeds from the offering may be used for general corporate purposes, including buying more Ether, expanding staking and validator infrastructure through the Made in America Validator Network, known as MAVAN, and repurchasing common stock.

The company has pursued an Ethereum accumulation strategy called “Alchemy of 5%,” targeting ownership of 5% of total ETH supply. Recent company disclosures place Bitmine’s holdings at more than 5.3 million ETH, with some figures citing about 5.42 million ETH. That equals roughly 4.3% to 4.5% of Ethereum’s circulating supply.

At recent market prices, Bitmine’s ETH treasury has been valued between about $10 billion and $11.6 billion. The company has also disclosed 203 BTC and about $446 million in cash. Earlier figures cited 4.7 million staked ETH worth about $8.3 billion, showing how quickly valuation changes with Ether’s price.

The company remains close to its 5% supply target, but reaching that level would still require the purchase of hundreds of thousands of additional ETH. The preferred stock proceeds would give Bitmine another funding source without issuing new common shares at current BMNR levels.

Staking Revenue and ETH Price Remain Central

Bitmine’s offering comes during a difficult period for Ether investors. ETH has fallen from earlier highs near $5,000 to below $1,800, leaving Bitmine with unrealized losses estimated near or above $9 billion on its Ethereum position.

Chairman Tom Lee said this week that ETH prices do not reflect what he described as stronger Ethereum fundamentals. He also said the market remains in the early stages of “crypto spring,” while Bitmine continues to build around Ethereum staking and treasury management.

MAVAN is a key part of the strategy. Ethereum validators lock ETH to help secure the proof-of-stake network and earn rewards. For a company holding millions of ETH, even modest staking yields can generate large dollar returns, but those returns must be compared with the 9.5% preferred dividend commitment.

The preferred shares can be redeemed by Bitmine at premiums ranging from 10% to 0%, depending on the timing of redemption. Holders will also have repurchase rights if certain corporate changes occur.

Bitmine’s plan adds an Ethereum version of the preferred equity model already used by Bitcoin treasury companies. The offering gives the company a way to raise capital for more ETH purchases and staking expansion while avoiding immediate common-stock dilution.

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