Wall Street veteran Tom Lee is doubling down on Ethereum. His company, BitMine Immersion Technologies (NYSE: BMNR), filed to raise $300 million through a new 9.50% Series A Perpetual Preferred Stock offering, with proceeds planned for more ETH buys and staking infrastructure. The move makes BitMine the first public company to launch an Ethereum-focused preferred share, echoing the playbook used by bitcoin-treasury firms like Strategy.
What’s being offered
- Size: $300 million gross (3 million shares at $100 stated amount each)
- Ticker: BMNP (application filed for NYSE listing; trading expected within 30 days if approved)
- Dividend: 9.50% per annum, fixed and cumulative, paid weekly in cash when declared by the board
- If unpaid: dividends compound, starting at 9.55% and rising 5 basis points per period up to 15% annually
- Redemption: BitMine can call shares at 110% in the first 18 months, 105% from 18–36 months, and at par after three years
- Backers: Moelis & Company and Cantor Fitzgerald are joint lead bookrunners
Where the money will go
Net proceeds are estimated around $290 million after fees. BitMine says funds will support general corporate purposes, including:
- Buying more ETH and other digital assets
- Expanding its MAVAN institutional validator platform
- Working capital and strategic Ethereum-ecosystem investments
- Potential common stock buybacks under its existing $4 billion repurchase authorization
BitMine’s Ethereum treasury at a glance
BitMine holds roughly 5.42 million ETH—about 4.5% of ethereum’s circulating supply—as of late May 2026. Its “Alchemy of 5%” goal is to accumulate near 5% of all ETH in circulation.
- Staked ETH: ~87% of holdings (about 4.72 million ETH) are actively staked
- Annualized staking revenue: projected $258 million at current yields, up to ~$296 million at full MAVAN scale
- Preferred dividend obligation: ~$28.5 million per year on $300 million at 9.50%
- Coverage: projected staking income covers the dividend roughly 9–10 times
That revenue cushion is key. It means the company expects its staking operations to comfortably service the preferred’s cash payout even if ETH prices wobble.
Why a preferred stock now?
Preferred shares are a capital markets tool that lets companies raise large sums while offering investors a high, predictable yield. BitMine’s structure mirrors instruments like Strategy’s STRC, which trades in the 9%–11.5% yield range. For BitMine, it’s a way to:
- Fund ETH accumulation without immediately diluting common shareholders
- Attract income-focused investors who want crypto exposure with a yield
- Build a recurring revenue engine via staking that backs the dividend
Tom Lee, BitMine’s chairman and head of research at Fundstrat, has positioned the firm as an Ethereum-native counterpart to bitcoin-treasury companies. The filing explicitly states BitMine’s strategy now centers on the Ethereum blockchain and ETH treasury management, including staking and validator infrastructure.
Risks to watch
BitMine warns investors the preferred will remain strongly tied to Ethereum’s performance. Key risks include:
- ETH price volatility: a sharp drop could pressure valuation and sentiment
- Staking economics: yields can change with network conditions and competition
- Regulatory developments: rules around staking and digital-asset securities could evolve
- Operational/counterparty risk: validator and custody operations carry inherent risks
Common shares (BMNR) dipped about 6% around the announcement, while ETH was down roughly 2% intraday, reflecting near-term caution despite the strategic move.
What this means for crypto markets
BitMine’s offering signals growing institutional confidence in Ethereum’s yield layer. With spot Ether ETFs already expanding participation, a high-yield preferred backed by staking revenue adds a new bridge between traditional finance and crypto. If BMNP lists successfully and trades near its target yield, it could encourage other treasury firms to follow suit with ETH-focused capital structures.
For now, all eyes are on SEC and NYSE approvals, the final pricing details, and how quickly BitMine deploys the cash into ETH and validator capacity. If staking revenue stays strong and the dividend is paid consistently, the preferred could become a benchmark for Ethereum-native income products.
