Bitmine to Launch New Preferred Stock Offering Despite $9.2 Billion Unrealized ETH Losses
Bitmine, the world’s largest Ethereum treasury company, has filed for a public offering of its Series A perpetual preferred stock. The company submitted its application to the Securities and Exchange Commission (SEC) on Wednesday.
According to the filing, Bitmine plans to offer 3 million shares of the stock. Each share will have a face value of $100 and feature a fixed annual dividend rate of 9.50%.
Key Details of the Bitmine Stock Offering
The company has applied to list these shares on the New York Stock Exchange (NYSE) under the ticker symbol BMNP. Trading is expected to start within 30 days after the initial issuance. Financial giants Moelis & Company and Cantor are serving as the joint lead bookrunners for the sale.
Investors can expect weekly dividend payments in arrears, which will be distributed in cash once declared. Any unpaid dividends will accumulate compounded interest. This rate will start at 9.55% and increase by 5 basis points per period, capping out at a maximum of 15%.
Bitmine intends to use the net proceeds for general corporate purposes. This includes buying more Ethereum (ETH) and expanding its crypto staking operations.
Following the Successful STRC Strategy
Bitmine is modeling this move after MicroStrategy’s popular STRC high-yield preferred stock. The STRC program offers an 11.5% dividend rate and has become a massive hit with traditional investors. It allows people to gain indirect Bitcoin exposure while earning monthly income.
Since its initial public offering in July 2025, the STRC program has grown rapidly. Through continuous follow-on issuances, the total value of STRC now stands at roughly $10.5 billion.
Massive ETH Holdings Face Steep Unrealized Losses
Despite facing massive financial headwinds, Bitmine continues to aggressively accumulate cryptocurrency. On June 1, the company revealed that it bought another 26,497 ETH. This purchase boosted its massive total holdings to 5,416,901 ETH.
However, the aggressive buying strategy comes at a steep price. Data from Dropstab shows that the Tom Lee-led firm is currently sitting on an estimated $9.2 billion in unrealized losses.
This financial hit is due to a prolonged decline in the crypto market. Ethereum fell 4.16% in a 24-hour window, trading down to $1,774. The leading altcoin has lost 32% of its total value over the past year.
