Bitmine's $300M crypto raise

Bitmine Immersion Technologies Announces $300 Million Preferred Offering to Boost Crypto Holdings

Anonymous

theblock.co

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Bitmine announces the issuance of preferred shares to raise $300 million

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Bitmine plans 3 million share preferred stock offering at 9.5% By Investing

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Tom Lee’s Bitmine (BMNR) to offer preferred stock with 9.5% dividend, following Strategy’s playbook

Bitmine Immersion Technologies Announces $300 Million Preferred Offering to Boost Crypto Holdings

theblock.co

Bitmine Immersion Technologies, an Ethereum treasury company led by Tom Lee, announced plans to issue 3.0 million shares of 9.50% Series A perpetual preferred stock, aiming to raise about $300 million. The shares are expected to be listed on the NYSE under the ticker BMNP and would pay a fixed 9.5% annual cash dividend on a weekly schedule, with unpaid dividends able to compound weekly. Bitmine said it intends to use proceeds for general corporate purposes, including acquiring additional ETH and other digital assets, expanding staking and validator infrastructure (including through MAVAN), funding working capital, making Ethereum ecosystem investments, and potentially repurchasing common stock. Several reports frame the move as an adaptation of the financing playbook pioneered by Bitcoin treasury firms that have relied on preferred-equity structures to access capital amid crypto-market volatility. The timing reflects mounting pressure on Bitmine’s ETH holdings, which have fallen sharply in value, leaving the company exposed to large unrealized losses even as it continues building toward a target of holding roughly 5% of Ethereum’s circulating supply. The filing also indicates the preferred shares may be redeemable on terms that vary by timing and include certain holder protections tied to corporate changes.

Key Points

Bitmine said the 9.50% Series A preferred dividend is cumulative “at a fixed rate of 9.50% per annum on the stated amount… regardless of whether or not declared or funds are legally available for their payment,” and regular dividends (when declared) would be paid weekly in cash in arrears; if any accumulated regular dividend isn’t paid on time, additional “compounded dividends” would accumulate and be compounded weekly.

The redemption details described by Bitmine include a premium that varies with timing: the preferred shares can be redeemed by the company at “premiums ranging from 10% to 0% depending on when the redemption occurs,” and holders would also have repurchase rights if certain fundamental corporate changes occur.

Bitmine’s preferred offering is arriving as ETH weakens: one report cited ETH trading near $1,820 (its lowest since February), and said Bitmine faces roughly a 47% drawdown on acquired ETH, implying an unrealized paper loss of nearly $9 billion on those holdings (citing Dropstab data).

Beyond its ETH target, Bitmine’s SEC-linked disclosures (as summarized by multiple outlets) include a broader balance sheet: as of May 25 it held 5,390,404 ETH (up from 4,473,459 at end of February), plus 203 BTC, $444 million in cash, and equity stakes valued at $200 million in Beast Industries and $95 million in Eightco Holdings; it also reported adding 111,942 ETH over the prior week.