BitMine Immersion Technologies (BMNR) saw its shares climb approximately 6% in late trading Monday after the company disclosed that its ether holdings have grown to 5.54 million tokens, bringing it closer to its stated goal of owning 5% of all Ethereum tokens in circulation. The stock last traded at $16.85, up 94.5 cents, with a daily range between $16.40 and $17.28 and volume of roughly 38.4 million shares.
The Norwalk, Connecticut-based firm reported total holdings of $9.6 billion in cryptocurrency, cash, and other assets as of June 7 at 3 p.m. ET. This includes 5,543,872 ether (ETH), 204 bitcoin, $247 million in cash, $180 million in Beast Industries, and $88 million in Eightco Holdings. Ether, the native token of the Ethereum blockchain, was trading at $1,702.70, up $26.33 for the day, after fluctuating between $1,645.30 and $1,713.15.
BitMine has transitioned from a bitcoin mining operation to a crypto treasury business, holding digital assets on its balance sheet as a publicly traded company. The firm aims to accumulate 5% of all Ethereum tokens, and its latest figures show it now holds 4.59% of the total supply, achieving 92% of that target. Chairman Thomas “Tom” Lee, co-founder of Fundstrat, noted in an SEC filing that the company accelerated its purchases during the recent downturn. “Over the past week, we acquired 126,971 ETH,” Lee said, explaining that BitMine viewed the price drop as disconnected from Ethereum’s underlying fundamentals.
The company’s stock remains closely tied to the volatility of ether, even as it expands its scale and generates staking revenue. BitMine had 4,718,677 ETH staked as of June 7, valued at $7.7 billion based on an ETH price of $1,630. Lee projected annualized staking revenues of $230 million, with potential for higher returns if the company stakes its entire ether holdings.
Preferred Stock Offering and Financing Strategy
On Friday, BitMine priced a larger-than-expected offering of 3.5 million shares of its 9.50% Series A Perpetual Preferred Stock at $80 per share, expecting net proceeds of $273.8 million. Settlement is scheduled for June 10. Preferred shares have priority over common stock for dividends, and “perpetual” means there is no fixed maturity date. The company may use the proceeds for general corporate purposes, including additional ether purchases, staking, validator infrastructure, working capital, or even buying back common shares.
BitMine is positioning itself as part of a broader crypto-treasury strategy similar to Strategy (formerly MicroStrategy), which is known for its large bitcoin reserves. Other smaller public companies, such as SharpLink and Bit Digital, have also begun holding ether. However, the strategy carries risks. The company’s prospectus warns that preferred dividends will primarily come from ETH staking yields, Ethereum options, and new capital, and there is no guarantee these will cover payouts. Additionally, a market for the preferred shares may not develop, and price swings or rising interest rates could push the shares lower.
Investors will be watching for the closing of the preferred stock sale on June 10 and whether BitMine continues to accumulate ether toward its 5% target. While the stock continues to attract trading interest, the ultimate driver of its performance may be the price of ether itself rather than corporate headlines.
