Bitmine eyes dividend-paying preferred shares, echoing Strategy’s playbook

Ethereum treasury company Bitmine Immersion Technologies is launching a $300 million perpetual preferred stock offering, borrowing a page from Strategy’s financing playbook. 

Bitmine told the SEC on Wednesday that it intends to offer 3 million of its 9.5% Series A perpetual preferred stock at $100 per share, which will trade under the symbol BMNP within 30 days of issuance. 

Preferred shares are a hybrid of stocks and bonds. Investors are not directly betting on the company’s growth but lending it money in exchange for regular payments. For every $100 share, Bitmine will pay dividends on a weekly basis, amounting to $9.50 per year. 

The firm plans to use income from its staked Ether (ETH) to pay the dividends, similar to offerings from Michael Saylor’s Bitcoin treasury company, Strategy. 

Strategy launched its Stretch (STRC) perpetual preferred stock in July 2025. Unlike Bitmine’s BMNP, which has a fixed rate, STRC uses a variable rate that Strategy adjusts monthly with the goal of keeping the trading price stable near $100.

STRC has scaled to $8.5 billion in just nine months and is now the largest preferred stock by market cap in the world, according to a May SEC filing. 

“Digital Credit, highlighted by STRC, has been a big success. STRC has shown strong demand, high liquidity, and low volatility,” said Phong Le, Strategy president and CEO.

In March, Le said that roughly 80% of STRC holders were retail investors. 

Related: 80% of Strategy's ‘Stretch’ buyers are mom-and-pop investors

Bitmine’s annualized staking revenue by week. Source: SEC

Bitmine said the net proceeds of its proposed offering would be used for general corporate purposes, including buying more Ether, expanding staking and validator infrastructure through Made in America Validator Network (MAVAN) and repurchasing common stock. 

Bitmine announced on Monday that it currently owns 4.49% of the total ETH supply and is 90% of the way to its “Alchemy of 5%” plan in just 11 months.

The firm has 4.7 million staked Ether, worth around $8.3 billion at current prices. However, unrealized losses on that ETH are nearly $9 billion.

The perpetual stock offering comes at a tough time for Ether investors, with the asset falling more than 12% over the past seven days to a 14-month low of $1,734 in early trading Thursday. 

“In our view, ETH prices are not reflecting the strengthening of Ethereum fundamentals, but then again, this is not surprising given we are in the early stages of crypto spring,” said Bitmine chairman Tom Lee on Monday. 

Bitmine stock fell nearly 6% Wednesday to $16.90, its lowest level since it pivoted to Ethereum in June 2025, according to Google Finance. 

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