TL;DR:
- BitMine plans to raise $300 million through preferred shares to strengthen its Ethereum treasury and validator network.
- The company already holds 5.42 million ETH, equivalent to 4.5% of the circulating supply, and is targeting 5% as its next milestone.
- Some 4.7 million ETH are currently staked through its MAVAN network, projecting approximately $276 million in annual rewards.
BitMine, the company backed by renowned analyst Tom Lee, filed with the U.S. Securities and Exchange Commission (SEC) a plan to issue 3 million Series A Perpetual Preferred shares at 9.50%, with a nominal value of $100 each. If the offering is fully subscribed, the transaction would generate approximately $300 million before expenses. Investors would receive a fixed annual dividend of 9.50%, payable weekly in cash, and the shares would trade on the New York Stock Exchange under the ticker BMNP.
The capital raised would be directed primarily toward the acquisition of additional Ethereum and the expansion of its validator infrastructure. The company also contemplates using a portion of the funds for Ethereum-related investments and share buybacks under its current $4 billion program.
BitMine’s Business Is Built on Staking
Unlike other crypto treasury companies that simply accumulate digital assets, BitMine has built its business model around generating revenue through staking. Approximately 4.7 million ETH are currently deposited through its MAVAN validator network, making staking its primary source of income. At current rates, those positions project close to $276 million in annual rewards, a figure significantly higher than the dividend obligation of the new preferred issuance, estimated at around $28.5 million per year.
BitMine already holds approximately 5.42 million ETH —equivalent to 4.5% of the circulating supply— after recently acquiring 26,497 ETH for approximately $52 million. Among its most recent purchases are transactions of $151 million and $237 million completed earlier this year.
The 5% Target and a Bearish Market
The market is navigating an adverse environment: the price of ETH hovers around $1,745, reflecting a decline of approximately 16% over the past month. Despite the pressure, BitMine maintains its long-term project and accelerates its accumulation strategy, following a path similar to the one Strategy charted with Bitcoin.
