Bitmine eyes dividend-paying preferred shares, echoing Strategy’s playbook
Bitmine is raising $300 million through a perpetual preferred share offering to fund more Ether buys and staking expansion.
Intelligence analysis by GPT-5.4 Mini
Bitmine Immersion Technologies is borrowing from Strategy’s financing model by selling dividend-paying preferred shares. The company says the proceeds could support more Ether purchases, staking infrastructure, and stock buybacks even as ETH trades near a 14-month low.
Bitmine is selling a special kind of share that promises regular payments, like renting out a bike instead of trying to sell it later for a higher price. The money raised can help the company buy more Ether and build more crypto machines while prices are weak.
Analysis
What Bitmine is doing
Bitmine Immersion Technologies told the SEC it plans to sell 3 million shares of 9.5% Series A perpetual preferred stock at $100 each, for a total raise of $300 million. The shares are expected to trade under the symbol BMNP within 30 days of issuance.
Preferred shares sit between stocks and bonds. In this case, investors are not buying direct upside in Bitmine’s business so much as receiving a regular dividend. Bitmine said it will pay dividends weekly, which works out to $9.50 per year for each $100 share.
Why Strategy matters here
The structure echoes Strategy’s recent preferred-share financing play. Strategy launched its Stretch perpetual preferred stock, STRC, in July 2025. Unlike Bitmine’s fixed-rate setup, STRC uses a variable rate that Strategy adjusts monthly. According to a May SEC filing cited in the article, STRC grew to $8.5 billion in nine months and became the world’s largest preferred stock by market cap.
Strategy president and CEO Phong Le said, “Digital Credit, highlighted by STRC, has been a big success,” pointing to strong demand, liquidity, and low volatility. The article also notes Le previously said about 80% of STRC holders were retail investors.
What Bitmine plans to do with the money
Bitmine said net proceeds would go toward general corporate purposes, including more Ether purchases, expanding staking and validator infrastructure through its Made in America Validator Network, and repurchasing common stock.
The company says it now owns 4.49% of total ETH supply and is 90% of the way to its “Alchemy of 5%” target after 11 months. It also says it has 4.7 million staked Ether worth about $8.3 billion at current prices, though unrealized losses on that ETH are nearly $9 billion.
The timing is difficult: Ether fell more than 12% over seven days to a 14-month low of $1,734, and Bitmine stock dropped nearly 6% Wednesday to $16.90, its lowest level since the firm pivoted to Ethereum in June 2025.
Key points
- Bitmine plans a $300 million perpetual preferred stock offering with a 9.5% annual dividend.
- The company says the shares will trade under the symbol BMNP and pay dividends weekly.
- Net proceeds could fund more Ether purchases, staking infrastructure, and common stock repurchases.
- Bitmine says it owns 4.49% of total ETH supply and is close to its 5% target.
- The move comes as Ether and Bitmine stock both fell sharply.
- The structure mirrors Strategy’s preferred-stock financing play, which has drawn strong demand.
If investors buy the preferred shares strongly, Bitmine could raise cash without selling Ether directly. The company also says staking income can help cover the dividends, which would support more ETH accumulation and validator growth.
The plan depends on Bitmine being able to keep earning enough from staked Ether to fund the dividend payments. If ETH stays weak or the company cannot raise capital on favorable terms, the structure could add pressure while unrealized losses remain large.
