BitMine Immersion Technologies (BMNR), an Ethereum treasury company led by Fundstrat co-founder Tom Lee, is borrowing a page from Strategy’s financing playbook and launching a $300 million preferred stock offering as crypto-treasury firms search for new ways to secure funding.
According to a Wednesday filing with the US Securities and Exchange Commission (SEC), the company is offering 3 million shares of its Series A Perpetual Preferred Stock at a stated value of $100 per share. stock. The securities have an annual dividend rate of 9.5%, with dividends paid weekly in cash if declared by the company’s board of directors.
The preferred shares will be listed on the New York Stock Exchange (NYSE) under the ticker BMNP, subject to approval, BitMine said.
The offer comes as digital asset finance companies, recently under pressure from the decline in crypto prices, are exploring new sources of funding. Strategy (MSTR), the largest corporate owner of bitcoin, introduced different classes of preferred shares. Bitcoin treasury peer Strive (ASST) also issued dividend-paying preferred stock SATA.
Bitmine aims to bring this playbook to its Ethereum liquidity strategy, according to the filing.
The firm has been among the most aggressive buyers in the sector, accumulating more than 5.3 million ETH worth about $10 billion and controlling about 4.5% of Ethereum’s circulating supply over the past year. This ETH bet is currently sitting on an estimated $9 billion in unrealized losses as ETH prices fell below $1,800 from around $5,000 in October.
Bitmine’s preferred stock is redeemable by the company at premiums ranging from 10% to 0% depending on when the redemption takes place. Holders will also have repurchase rights if certain fundamental corporate changes occur. The filing did not specify how Bitmine intends to use the proceeds.
The timing is notable given the growing pressure on Strategy’s preferred equity funding model. The firm’s STRC preferred stock fell 5% below its $100 par value on Wednesday as investors debate whether the company can comfortably maintain its dividend payments while bitcoin prices fall. Strive’s SATA also fell below $97, trading 3% below its pat value, underscoring the pressure on the digital asset financing model.
