BitMine Immersion Technologies (NYSE: BMNR), the Ethereum treasury company chaired by prominent Wall Street analyst Tom Lee, has filed with the U.S. Securities and Exchange Commission (SEC) to offer 3 million shares of 9.5% Series A Perpetual Preferred Stock at a stated value of $100 per share.
According to the filing, BitMine aims to raise up to $300 million in fresh capital. This financing comes as the company grapples with billions in paper losses on its massive Ethereum holdings but continues its aggressive accumulation strategy.
The perpetual preferred shares carry a fixed cumulative dividend rate of 9.5% annually, with payments payable weekly in cash if declared by the board. The securities are expected to list on the New York Stock Exchange under the ticker symbol BMNP, subject to approval, with trading potentially beginning within 30 days of issuance.
Joint lead bookrunners Moelis & Company and Cantor Fitzgerald are handling the offering, which follows an effective shelf registration statement.
This structure mirrors financing tactics used by Strategy (formerly known as MicroStrategy), allowing BitMine to raise funds without immediately diluting common shareholders or taking on traditional debt. Proceeds are earmarked for general corporate purposes, including additional Ethereum purchases, expansion of staking infrastructure, and working capital.
Mounting Pressure on BitMine’s Ethereum Treasury
BitMine has positioned itself as the world’s largest Ethereum treasury company, holding over 5.3 million ETH—representing roughly 4.5% of the total circulating supply. However, the timing of its purchases has resulted in steep unrealized losses. Recent data indicates the portfolio’s value has dipped below $10 billion, with paper losses surpassing $8.8 billion as Ethereum prices have fluctuated amid broader market volatility.
The company accumulated much of its stash at higher average prices, with early batches reportedly purchased near $3,700–$4,000 per ETH. Quarterly reports have shown multi-billion-dollar net losses driven almost entirely by mark-to-market adjustments on these holdings. Despite this, BitMine has continued buying, adding hundreds of millions in ETH even as losses mounted.
Critics question the sustainability of this approach, drawing parallels to past high-profile crypto collapses. BMNR’s common stock has also experienced sharp declines from its peaks, reflecting investor skepticism. Yet the company maintains it faces no immediate pressure to sell, betting on long-term Ethereum appreciation and staking yields to offset costs.
Strategic Use of Capital: Staking Expansion via MAVAN
A key focus for the raised funds is expanding BitMine’s staking operations through its proprietary platform, MAVAN (Made in America Validator Network). Launched earlier in 2026, MAVAN provides institutional-grade Ethereum staking infrastructure.
The company already stakes a significant portion of its holdings—over 4.7 million ETH in some reports—generating substantial annual yields estimated in the hundreds of millions.
Proceeds from the preferred stock offering could accelerate MAVAN’s growth, supporting both internal treasury staking and external institutional clients. This creates a yield-generating machine designed to cover dividend obligations on the new preferred shares.
BitMine envisions MAVAN as a leading provider not just for ETH but potentially other proof-of-stake networks.
By using preferred equity, the company avoids the higher costs or covenants of traditional debt while providing investors with priority claims on dividends and liquidation preferences. Redemption features allow BitMine to call the shares at declining premiums over time, offering flexibility.
Market Context and Broader Implications
This filing arrives during a period of renewed interest in crypto treasury strategies. Firms are exploring creative financing to build large asset positions without traditional balance sheet strain.
BitMine’s play echoes elements of Strategy’s Bitcoin-focused model but tailored to Ethereum’s staking economics. Spectators view it as bullish for ETH, signaling confidence from a high-profile player and potential for increased buying pressure.
The 9.5% dividend, while attractive in a low-yield environment for some, must be weighed against Ethereum’s volatility and staking returns (typically 3-5% or higher depending on conditions). If yields cover dividends reliably, it could stabilize the structure.
However, risks remain prominent. Perpetual preferred stock carries no maturity date, meaning dividends could be suspended in distress (though cumulative). With existing unrealized losses already historic in scale, further ETH drawdowns could pressure the entire capital stack. Common shareholders may face dilution risks indirectly if performance falters, and preferred holders gain seniority.
In the current landscape, BitMine’s strategy underscores a maturing crypto corporate financing, where public companies treat digital assets as core treasury reserves. As regulatory clarity improves and institutions deepen involvement, such vehicles could proliferate.
Also read: Kalshi Brings Bitcoin Perps to the U.S. No Expiry, No Fees for Now
