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BitMine announced a $300 million preferred stock offering yesterday, with weekly cash dividends at 9.50% per year. The offering puts BitMine on the same capital-structure path as Strategy, though relying on ETH staking yield can fund recurring dollar dividends.
What's the Scoop?
- The Offering: BitMine is offering 3 million shares of Perpetual Preferred Stock at a $100 stated amount per share, for a potential $300 million raise. The shares will pay weekly dividends at a fixed 9.50% annual rate. If BitMine misses a payment, the unpaid amount keep building, with the rate on missed payments able to go above 15% per year. The shares will list on the NYSE under the symbol BMNP, with trading expected to commence within 30 days of issuance. Moelis & Company and Cantor Fitzgerald are joint lead bookrunners.
- Use of Proceeds: BitMine plans to use the net proceeds for general corporate purposes, including buying more ETH, expanding its staking and validator infrastructure, working capital, strategic investments in the
Ethereum ecosystem, and share repurchases. - How it Sizes Against STRC: BitMine is following the preferred-stock playbook Strategy pioneered, but BitMine’s version is simpler. Its proposed preferred pays a fixed 9.50% dividend weekly, while Strategy’s STRC uses a variable dividend rate, currently paid monthly, that can adjust to help keep the instrument trading near its $100 stated value.
Under the initial $300 million offering size, BitMine’s 9.50% rate would create about $28.5 million in annual dividend obligations, covered many times over on paper by its projected $258 million in annualized staking revenue. But that cushion shrinks with scale. For example, a $3 billion preferred stack at the same rate would require $285 million in annual dividends, exceeding the current staking-revenue projection before expenses, taxes, ETH volatility, or yield compression.
