Bitmine Offers $300M Preferred Stock to Boost Ethereum Holdings

Bitmine Immersion Technologies (BMNR) has announced a $300 million preferred stock offering aimed at expanding its Ethereum (ETH) treasury and staking infrastructure. The move, disclosed in an SEC filing on June 3, 2026, highlights Bitmine’s aggressive strategy to solidify its position as a key institutional player in Ethereum’s ecosystem.

The offering will consist of 3 million shares of 9.5% Series A perpetual preferred stock, priced at $100 each. Shareholders will receive $9.50 annually in dividends, paid weekly, funded by income generated from Bitmine’s staked ETH. Trading under the ticker BMNP, the shares are expected to hit the market within 30 days.

Bitmine’s approach mirrors the playbook of Strategy (formerly MicroStrategy), which launched its Stretch (STRC) perpetual preferred stock in mid-2025 to fund Bitcoin acquisitions. That offering has ballooned to $8.5 billion in market cap within nine months, underscoring investor appetite for crypto-backed financing instruments. However, unlike Strategy’s variable-rate STRC, Bitmine’s BMNP features a fixed dividend payout, offering more predictable returns.

The funds raised will primarily be used to purchase additional Ether, expand Bitmine’s Made in America Validator Network (MAVAN), and repurchase common stock. As of now, Bitmine owns 4.7 million ETH—approximately 4.49% of Ethereum’s circulating supply—valued at $8.3 billion based on current market prices. The firm has publicly targeted owning 5% of Ethereum’s total supply by the end of 2026.

Bitmine’s aggressive ETH accumulation has come at a cost. The company reported $9 billion in unrealized losses on its ETH holdings, driven by Ethereum’s recent price declines. ETH is currently trading at $1,788.35, a 14-month low, and down 12% over the past seven days. Despite this, Chairman Tom Lee remains bullish, describing the current market as the “early stages of crypto spring.” Just last month, Bitmine purchased 101,745 ETH for $238 million, further doubling down on its long-term bet on Ethereum.

The timing of the stock offering is notable. With ETH prices under pressure and the broader crypto market struggling for momentum, Bitmine’s dividend-backed stock could appeal to yield-focused investors seeking exposure to Ethereum without the direct volatility of holding the asset. Retail investors, who made up 80% of Strategy’s STRC buyers, are expected to play a key role in BMNP’s reception.

However, market skepticism lingers. Bitmine’s stock (BMNR) fell nearly 6% to $16.90 on Wednesday, its lowest level since the company pivoted to Ethereum-focused operations in 2025. Analysts are questioning whether Bitmine’s strategy can sustain itself amid mounting losses and a weak ETH price environment.

The success of this $300 million offering could set the tone for future crypto-financing models. If Bitmine effectively deploys these funds to scale its staking operations and achieve its ambitious 5% ETH supply target, it may create a roadmap for other crypto treasuries looking to boost their holdings during market corrections.

Investors will be watching closely as BMNP begins trading later this month, particularly to gauge whether Bitmine can replicate the overwhelming demand seen for Strategy’s STRC. For now, the Ethereum market faces immediate pressure, but Bitmine is clearly betting on the network’s long-term growth.

Image source: Shutterstock