BitMine to sell 9.5% preferred stock for $300M amid $8B ETH loss

BitMine disclosed on June 3 plans to sell 3 million shares of 9.50% Series A perpetual preferred stock with a $100 stated amount, raising up to $300 million. The securities would list on the New York Stock Exchange under the ticker BMNP if the listing is approved. Moelis & Company and Cantor are joint lead bookrunners. If the full offering is placed, BitMine would incur about $28.5 million in annual dividend obligations, roughly $548,000 a week, with dividends paid weekly when declared by the company’s board.

Proceeds may be used for general corporate purposes, including additional purchases of ETH and other digital assets, expansion of staking and validator infrastructure, working capital, Ethereum-related strategic investments, and repurchases of common stock. The filing indicates public-market investors would fund further ETH accumulation while the company retains a large staked position.

BitMine currently holds more than 5.3 million ETH, about 4.5% of the token’s circulating supply, and stakes a portion of that holding to earn protocol rewards. The company reports annualized staking revenue in the hundreds of millions of dollars. Industry data show staking accounted for roughly 60% of disclosed revenue among publicly listed ETH treasury firms in 2025. Chairman Thomas Lee has argued staking rewards let ETH treasury firms earn yield without selling tokens.

The Series A preferred carries a fixed 9.50% coupon rather than a variable rate. Unpaid dividends will accumulate and compound weekly, and a step-up provision can raise the rate over time to a cap of 15% per year. The shares include a liquidation preference that adjusts according to a market-price formula but will never fall below $100. BitMine may redeem the shares at 110% of par during the first 18 months, 105% from 18 months to three years, and 100% after three years, plus accumulated and unpaid dividends. Holders have repurchase rights if certain fundamental changes occur.

The company’s filing states dividends are not secured by a dedicated pool of staking income. Dividends may be funded from available cash, ETH yield, the sale of securities, future financing, or other sources, and the filing warns staking income may not be sufficient. The filing also notes staked ETH might not be immediately available for withdrawal or sale during periods of market stress, a factor that links the preferred’s fixed cash obligation to the liquidity profile of BitMine’s ETH holdings.

The offering resembles preferred-stock financing used by other crypto treasury firms but differs in key terms. One comparable preferred security uses a variable dividend that can be adjusted monthly to help keep the shares trading near par. BitMine’s preferred uses a fixed 9.50% coupon paid weekly when declared and does not include a monthly adjustable dividend feature. The preferred’s redemption mechanics and the lack of a variable dividend are distinct elements of the Series A structure.

The filing shows the company is asking public-market investors to finance further ETH accumulation while unrealized losses on its ETH holdings have risen above $8 billion as market prices sit below the firm’s average purchase cost.