Bitmine has filed with the SEC to launch a public offering of 3 million shares of its 9.50% Series A Perpetual Preferred Stock. The company says the proceeds would back Ethereum and corporate initiatives, with ETH purchases and staking infrastructure at the top of the list.
What Bitmine is selling
Bitmine’s preferred shares carry cumulative dividends at a fixed annual rate of 9.50% based on a stated value of $100 per share, according to the company’s SEC filing as reported by Crypto Potato.
Dividends are payable in cash when the company’s board declares them. But the structure has a built-in penalty for missed payments. If Bitmine doesn’t pay a declared dividend on schedule, additional compounded dividends accrue weekly. The dividend rate then steps up gradually, increasing up to a maximum of 15% per year until the owed amount is fully settled.
Bitmine also applied to list the new preferred shares on the New York Stock Exchange under ticker “BMNP.” Crypto Potato reports trading is expected to begin within 30 days of the initial issuance if the NYSE listing gets approved.
Where the money could go
In its SEC filing, Bitmine says net proceeds may be used for general corporate purposes. Crypto Potato lists several specific use cases:
- Acquisition of additional ETH and other digital assets
- Expansion of staking and validator infrastructure through its MAVAN platform
- Working capital needs
- Strategic investments tied to the Ethereum ecosystem and broader digital asset adoption
- Potential repurchases of its common stock under an existing buyback program
That combo is worth reading carefully. Bitmine is not presenting the offering as a narrow treasury refill. It’s also tying capital to staking capacity, plus corporate spend and buybacks.
The dividend mechanism looks like a known template
Crypto Potato notes Bitmine’s NYSE application is based on a model similar to Saylor-led Strategy’s STRC perpetual preferred stock. STRC pays an 11.5% dividend.
STRC has drawn investors who want monthly income while getting indirect exposure to Bitcoin. The headline takeaway from Crypto Potato is not the narrative angle. It’s the design choice. Bitmine is importing the familiar “perpetual preferred with step-up risk” playbook and adapting the yield to 9.5% at issuance.
ETH exposure, losses, and how much it plans to keep buying
Bitmine’s pitch to fund an ETH accumulation strategy lands against a rough backdrop for Ethereum treasury companies. Crypto Potato says Bitmine’s Ethereum holdings have risen to 5.42 million ETH, putting it at roughly 90% of its target to own 5% of all ETH.
The company also says 4.72 million ETH are staked, with a portion secured via its MAVAN staking platform.
That staking footprint matters because it connects treasury size to infrastructure. If ETH is a core risk factor, Bitmine’s staking setup is part of how it aims to monetize that exposure, at least operationally.
But the filing sits next to a hard number. Crypto Potato cites recent data estimates placing Bitmine’s unrealized losses at more than $10 billion, tied to a sharp Ethereum decline. Crypto Potato also says Ethereum is down more than 45% year to date.
Even with those losses on paper, Crypto Potato reports Chairman and Fundstrat co-founder Tom Lee remains optimistic about Ethereum. Lee is quoted in the report predicting an end to the bull market and the start of “crypto spring,” framing a longer arc rather than near-term stabilization.
Key facts from Bitmine’s filing
| Item | What Bitmine says in the SEC filing (via Crypto Potato) |
|---|---|
| Offering size | 3 million shares of 9.50% Series A Perpetual Preferred Stock |
| Dividend rate | 9.50% fixed annual rate on $100 stated value |
| Dividend payment terms | Cash dividends when declared by the board |
| Missed dividend mechanics | Compounded weekly accrual, rate steps up gradually up to 15% per year until fully paid |
| Proposed NYSE listing | “BMNP” ticker, trading expected within 30 days of initial issuance if approved |
| Use of proceeds | ETH and digital asset acquisitions, MAVAN staking and validator expansion, working capital, strategic ecosystem investments, possible common stock repurchases |
| ETH treasury size | 5.42 million ETH, about 90% of its target to own 5% of all ETH |
| ETH staked | 4.72 million ETH staked, portion secured via MAVAN |
Why this matters for Ethereum treasury funding
Perpetual preferred stock can be a straightforward way to raise cash without issuing common equity at the same level of dilution pressure. But Bitmine’s structure also highlights investor risk. The dividend rate can climb if dividends aren’t paid on schedule, with the increase driven by weekly compounded accrual, according to Crypto Potato.
The other practical point is simpler. Bitmine is using a capital markets filing to keep funding the same play: large ETH treasury buildout plus staking infrastructure. Crypto Potato frames Bitmine as one of the sector’s most active ETH buyers. With Ethereum down sharply and reported unrealized losses exceeding $10 billion, the offering reads like reinforcement rather than a pivot.
No one gets a free pass in crypto treasury management. Bitmine is accepting the cost of capital today to buy and stake through a tougher ETH tape.