Tom Lee's Bitmine (BMNR) to offer preferred stock with 9.5% dividend, following Strategy's playbook
BitMine plans a $300 million preferred stock sale with a 9.5% dividend as crypto treasury firms look for new funding. The shares would list on the NYSE as BMNP.
Intelligence analysis by GPT-5.4 Mini
Tom Lee's BitMine is using a Strategy-style funding model to raise as much as $300 million through perpetual preferred shares. The move comes as Ethereum treasury firms face pressure from falling crypto prices and investor scrutiny over dividend-heavy financing.
BitMine is trying to raise money by selling a special kind of stock that pays people 9.5% a year, like a store handing out a steady coupon. It wants to use that money to keep building its Ethereum pile, but the price of Ethereum has dropped a lot.
Analysis
BitMine Immersion Technologies, led by Fundstrat co-founder Tom Lee, filed with the SEC to sell 3 million shares of Series A Perpetual Preferred Stock at a stated value of $100 per share. The securities carry a 9.5% annual dividend, paid weekly in cash if the board declares it. BitMine said the shares would trade on the New York Stock Exchange under the ticker BMNP, subject to approval.
The company is explicitly following the financing approach used by bitcoin-heavy peers such as Michael Saylor's Strategy, which has issued multiple preferred stock classes to raise money for its digital asset treasury. The article also notes that bitcoin treasury firm Strive has issued dividend-paying preferred stock, showing that this model is spreading across the sector.
BitMine is one of the most aggressive Ethereum buyers in the market, having accumulated more than 5.3 million ETH worth roughly $10 billion and about 4.5% of Ethereum's circulating supply over the past year. But that bet is underwater: the article says the position carries an estimated $9 billion unrealized loss after ETH fell below $1,800 from around $5,000 in October.
The preferred shares include redemption terms that let BitMine buy them back at premiums ranging from 10% down to 0%, depending on timing. Holders also get repurchase rights if certain fundamental corporate changes happen. The filing does not say how BitMine will use the proceeds.
The timing matters because the preferred-funding model itself is under pressure. The article says Strategy's STRC preferred stock fell below its $100 par value, while Strive's SATA also traded under par, reflecting investor concern about whether these dividend obligations can be maintained if crypto prices stay weak.
Key points
- BitMine filed to sell 3 million shares of perpetual preferred stock at $100 each.
- The preferred stock carries a 9.5% annual dividend, payable weekly in cash if declared.
- The shares are intended to list on the NYSE under the ticker BMNP, subject to approval.
- BitMine has accumulated more than 5.3 million ETH, but the position is now deeply underwater.
- The filing does not say how BitMine plans to use the proceeds.
If investors accept the offering, BitMine could raise up to $300 million without selling more common stock. That would give it another way to fund its Ethereum strategy while keeping its treasury plan alive.
The article shows that high-yield preferred stock is already under pressure in the crypto treasury world, with similar securities trading below par. If Ethereum stays weak, BitMine's large unrealized loss could make investors skeptical of another dividend-paying funding round.
