Thomas Lee’s Bitmine is turning to the preferred stock market to raise new capital for its Ethereum strategy, offering investors a 9.5% annual dividend.
On June 3, the company announced plans to sell 3 million shares of its 9.50% Series A perpetual preferred stock for a listed price of $100, allowing it to raise $300 million.
If approved for listing, the shares will trade on the New York Stock Exchange under the ticker BMNP. Moelis & Company and Cantor are acting as joint lead managers.
If sold in full, this offering would result in an additional annual dividend obligation of approximately $28.5 million, payable weekly if declared by BitMine’s board of directors.
The sale comes as the Ethereum treasury company faces tougher challenges to its corporate crypto model. Due to current market conditions, BitMine’s unrealized losses on ETH exceeded $8 billion, as the decline in ETH caused the asset to drop significantly below the company’s average purchase price.
Still, the move will further deepen the company’s balance sheet, staking operations, and ties to public market investors who are being asked to fund the next phase of accumulation.
Payments built on Ethereum yields
BitMine said proceeds from the offering may be used for general corporate purposes, including the purchase of additional ETH and other digital assets, expansion of staking and validator infrastructure, working capital, strategic investments related to Ethereum, and common stock repurchases.
By leveraging the proceeds broadly, this service is more than just balance sheet repair. This could allow Bitmine to continue accumulating ETH even when market prices are low, strengthening the company’s role as the largest publicly traded Ethereum treasury company.
Over the past year, the company has built up its position in the ETH portfolio through aggressive purchases and currently holds over 5.3 million tokens. This corresponds to approximately 4.5% of the circulating supply of ETH.
Notably, a large portion of that stack is staked, allowing BitMine to earn protocol rewards while holding the tokens.
Chairman Thomas Lee claimed that these staking rewards give Ethereum treasury companies an advantage over Bitcoin-centric entities. Unlike Bitcoin, ETH can generate yield through staking, allowing companies to earn revenue without selling the underlying asset.
This feature is at the heart of BitMine’s new preferred stock. At a coupon rate of 9.5%, issuing the full $300 million would result in approximately $548,000 in dividends per week.
BitMine says annual staking revenue is in the hundreds of millions of dollars, suggesting that preferred dividends are small compared to the income that staking ETH could generate under normal market conditions.
Moreover, the broader Ethereum treasury sector is already moving in that direction. According to a study by staking provider Everstake, staking will account for 60% of the disclosed revenue of all listed ETH financial companies in 2025.
According to the report, this number was drawn from companies that separately reported staking-related income, and shows how active adoption is a big part of the public ETH financial model.
This revenue mix helps explain why Bitmine relies on Ethereum’s yield profile while also asking investors to accept a fixed 9.5% dividend.
The company doesn’t just hold ETH in treasury reserves. The company is converting its reserves into a recurring revenue base that supports capital market financing.
But the company’s filing also shows why the structure is not without risks.
BitMine does not commit to a dedicated pool of staking income for preferred stock. Instead, the filing states that dividends may be funded through available cash, ETH yield activity, securities sales, future capital raisings, or other funding sources.
On the other hand, the company also warns that staking income may not be sufficient and that ETH staked during stress periods may not be immediately withdrawn or sold.
This warning is central to the deal, as the preferred stock turns a portion of BitMine’s Ethereum stake into a recurring cash obligation.
STRC comparison of strategies has limitations.
BitMine’s move is very similar to the funding model used by Michael Saylor’s Bitcoin finance company, Strategy. The company has repeatedly used preferred stock and other securities to fund its crypto asset accumulation and manage its capital structure.
Both companies are using open market instruments to translate investor demand for yield into balance sheet capacity for purchasing digital assets. The companies have sought to create securities that appeal to investors who want exposure to crypto assets without directly owning the underlying tokens.
Both companies also operate in markets where the value of key assets can change rapidly before the cash obligations attached to the securities come due.
However, this comparison has limitations.
Strategy’s STRC Recommended Product is a floating rate product designed to keep stocks trading near the stated amount of $100. The dividend rate can be adjusted monthly, giving the Strategy the tools to react when market prices deviate from parity.
BitMine’s Series A is simpler in some ways and more rigorous in others. Rather than a variable interest rate that can be reset to affect the transaction price, a fixed 9.5% coupon payable weekly in arrears upon declaration applies.
However, if no dividends are paid, the dividends will accumulate and compound weekly. The accrued dividend rate may increase over time and is capped at 15% per year.
| Features | STRC | Bitmine Series A |
|---|---|---|
| Publisher | Strategy, Bitcoin Vault | BitMine, Ethereum Treasury |
| Type of security | permanent priority | permanent priority |
| dividend | Change, currently 11.50% | Fixed 9.50% |
| payment frequency | monthly cash | Cash every week if declared |
| the purpose | General corporate purposes, including purchasing Bitcoin | General corporate purposes including ETH/digital assets and staking infrastructure |
| Face value/stated amount | 100 dollars | 100 dollars |
| Market stabilization function | Dividend adjusted to keep price near $100 | Liquidation preference is adjusted using a market value formula, but there are no floating dividends that target par value |
| redemption | STRC is callable above $101 and any unpaid dividends will be added | BitMine can claim 110% for the first 18 months, 105% for 3 years from 18 months, and 100% thereafter, plus any unpaid dividends. |
Preferred stock also includes a liquidation preference that starts at $100 and is adjusted based on a market price formula, never to fall below $100.
BitMine may redeem shares at 110% of the stated amount for the first 18 months, 105% for 3 years after 18 months, and 100% after 3 years, plus any accumulated and unpaid dividends. In the event of certain fundamental changes, holders will also have the right to repurchase.
These terms give BitMine flexibility, but also show the price of raising capital in a depressed crypto market. While the 9.5% dividend is high enough to attract the attention of income investors, it also reflects the premium demanded by companies whose primary asset base is tied to ETH.
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