Bitmine plans $300M preferred stock offering for Ethereum expansion
In brief
- Bitmine issues 3M shares of 9.50% Series A Perpetual Preferred Stock at $100 per share for $300M gross proceeds
- Proceeds fund Ethereum purchases, staking infrastructure expansion, and potential common stock repurchases
- Bitmine holds ~5.42M ETH (4.3–4.5% of total supply) with unrealized loss exceeding $9B
- 9.50% annual dividend obligation equals roughly $28.5M in annual cash payouts
The Offering Structure
The new preferred shares are expected to trade on the NYSE under the ticker BMNP, pending regulatory approvals. A 9.50% annual dividend on $300 million in preferred stock translates to approximately $28.5 million per year in dividend obligations. Preferred stock holders receive priority on dividends and typically in liquidation scenarios compared to common shareholders.
Perpetual preferred stock has no maturity date, meaning the dividend obligation does not expire. This structure avoids diluting common stockholders but locks in a fixed cash obligation. Bitmine committed to a fixed 9.50% annual dividend obligation, payable weekly in cash if declared by the board.
Ethereum Accumulation and Risk
As of early June 2026, Bitmine held approximately 5.42 million ETH, representing 4.3% to 4.5% of Ethereum's total supply. Bitmine's ETH holdings were valued between $10 billion and $11.6 billion as of early June 2026. Yet the company faces a substantial headwind. The company was sitting on an unrealized loss exceeding $9 billion due to accumulating ETH during periods of price strength that subsequently declined.
Context matters here. Bitmine's ETH portfolio was worth more than $13 billion at previous highs. Bitmine's stated ambition is to reach 5% of total ETH supply through its 'Alchemy of 5%' strategy. The preferred offering is a lever to accelerate that goal.
Staking Revenue and Dividend Coverage
Part of the proceeds will fund expansion of MAVAN, Bitmine's institutional staking platform launched earlier in 2026. Staking is how Ethereum's proof-of-stake network validates transactions and secures the blockchain. MAVAN positions Bitmine to earn yield on its own ETH holdings while offering staking services to institutional clients.
The critical question: can staking revenue cover the 9.50% dividend? Bitmine's ability to pay the dividend depends on the health of its ETH treasury and its staking revenue. Ethereum staking yields have compressed in recent years as more capital enters the network. If yields fall below the dividend obligation, Bitmine will need to draw on reserves or generate alternative revenue streams.
Tom Lee, co-founder of Bitmine and well-known in financial circles as Fundstrat's managing partner and a longtime crypto bull, has positioned the company as a long-term Ethereum holder. This offering signals confidence in Ethereum's future. It also signals that Bitmine needs capital now to seize what it views as favorable accumulation conditions.
