BitMine Immersion Technologies saw its stock tick higher Thursday following the announcement of a 9.50% Series A Perpetual Preferred Stock offering, a move designed to raise capital and gauge investor appetite for high-yield crypto-linked equity as ether prices remain under pressure.
Shares of BitMine (ticker: BMNR) were recently trading at $16.95, up 5 cents on the session, with a daily range of $16.35 to $17.43. The broader market showed mixed sentiment, with the SPDR S&P 500 ETF flat and the Invesco QQQ Trust edging lower.
The company plans to sell 3 million shares of the perpetual preferred stock at a stated value of $100 per share, according to a preliminary prospectus filed with the SEC. BitMine intends to list the new security on the New York Stock Exchange under the ticker BMNP, pending regulatory approval.
Proceeds from the offering are earmarked for general corporate purposes, including additional purchases of ether and other digital assets, expansion of the company's MAVAN staking and validator operations, working capital, Ethereum-linked investments, and potential buybacks of common stock. Staking involves locking tokens to help validate blockchain transactions in exchange for rewards.
BitMine disclosed that as of June 1, it holds 5,416,901 ETH, 203 bitcoin, $446 million in cash, and positions in Beast Industries and Eightco Holdings. The total value of its crypto, cash, and other investments stood at $11.6 billion as of May 31, based on an ETH price of $2,003. At Thursday's spot ether price of approximately $1,781, the ETH holdings alone are worth about $9.65 billion, representing a nearly 11% decline from the May 31 valuation.
Chairman Thomas "Tom" Lee noted in the company's Monday update that BitMine acquired 26,497 ETH last week and reiterated his view that ether prices "are not reflecting the strengthening of Ethereum fundamentals." Lee also expressed confidence that BitMine will achieve its goal of holding approximately 5% of the total ETH supply by 2026.
The offering comes at a challenging time for crypto-focused treasury stocks. According to CoinDesk data, BitMine's unrealized losses on its ether holdings have reached an estimated $8.9 billion after ETH slipped below $1,800. The stock has fallen to its lowest level since the company launched its Ethereum treasury strategy in 2025.
BitMine's capital-raising effort mirrors similar moves by other crypto treasury companies. Strategy, often viewed as the closest comparable, recently sold bitcoin for the first time since 2022 to cover preferred-stock dividend payments, a development that rattled crypto investors. Standard Chartered's Geoffrey Kendrick described the week as "painful in crypto," while IG Bank's Fabien Yip called the deal "symbolic."
The prospectus warns that BitMine may rely on ETH staking yields, Ethereum options, and new capital to fund preferred dividends, but acknowledges the possibility that it may lack sufficient cash to make payments if ether weakens further. In such a scenario, the company could defer dividends or opt not to declare them, potentially leading to dilution through the sale of common shares, securities, or crypto assets to cover obligations.
