Bitmine Launches $300M Preferred Stock Raise as Ethereum Treasury Nears 5% Milestone

The move comes as the company controls over 5.4 million ETH — nearly 5% of total supply — despite facing around $9 billion in unrealized losses amid Ethereum's recent price decline below $1,800.

Bitmine Doubles Down on Ethereum Strategy

Bitmine Immersion Technologies has filed with the SEC to issue 3 million shares of 9.5% Series A perpetual preferred stock at $100 per share. The offering, expected to trade under ticker BMNP on the NYSE within 30 days, will pay dividends weekly. Proceeds are earmarked for purchasing additional ETH, expanding validator infrastructure through the Made in America Validator Network, and potential common stock repurchases.

This financing approach mirrors strategies used by other major crypto treasury companies. Bitmine currently holds approximately 5.42 million ETH, including recent purchases of over 26,000 tokens on June 1. The holdings represent roughly 4.49% of Ethereum's total supply, putting the company close to its "Alchemy of 5%" target.

Market Challenges and Unrealized Losses

Ethereum has faced significant downward pressure, recently sliding below $1,800 to 14-week lows. The price decline has resulted in substantial paper losses for Bitmine, estimated at nearly $9 billion. Around 4.7 million ETH in the company's holdings are staked, generating annual revenue that helps support dividend obligations.

Despite current market conditions, Bitmine Chairman Tom Lee remains confident in Ethereum's fundamentals. He has described the price weakness as not fully reflecting the network's improving technical outlook and believes the broader crypto market is still in early stages of a new cycle.

Bitmine's approach of using equity and preferred instruments rather than heavy debt has helped avoid some risks faced by other treasury operators. However, the company's common shares have also declined amid the broader market weakness.

Comparison to Other Treasury Models

The preferred stock structure draws direct parallels to similar instruments in the Bitcoin space. Strategy's perpetual preferred shares have achieved significant scale, demonstrating strong investor appetite for yield-generating products tied to digital asset treasuries. Bitmine's fixed-rate offering provides a stable income stream while allowing the company to continue expanding its Ethereum position.

With roughly 87% of its ETH staked, Bitmine generates consistent yield that supports the 9.5% dividend commitment. This setup positions the company to benefit from both staking rewards and potential future appreciation in Ethereum's value.

Strategic Implications for Corporate Crypto Adoption

Bitmine's continued accumulation and innovative financing highlight a maturing approach to digital asset treasury management. By leveraging staking revenue to support preferred stock dividends, the company creates a yield-bearing instrument that appeals to income-focused investors while maintaining exposure to Ethereum's upside potential.

The offering underscores growing institutional comfort with using blockchain-native yield to back traditional financial products. As Ethereum's network fundamentals evolve, companies like Bitmine are positioning themselves to capture both staking returns and long-term asset appreciation.

Market observers note that while short-term price action remains challenging, the scale of Bitmine's holdings and its commitment to further purchases signal strong conviction in Ethereum's role in the broader digital economy.