Bitmine Immersion Technologies, the world’s largest ether (ETH) treasury company, filed on June 3 with the U.S. Securities and Exchange Commission (SEC) to begin a public offering of Series A perpetual preferred stock.
The company plans to issue 3 million shares under the symbol BMNP, according to the document. The shares have a par value of $100 per share and a fixed cumulative annual dividend of 9.5%.
Dividends are paid weekly, but if they are not, Interest accumulates and can increase your interest rate by up to 15%.
Meanwhile, the company indicated that it plans to use the funds raised for general corporate purposes, such as purchasing new Ethereum virtual currency and expanding its staking operations.
The introduction of BMNP comes at a difficult time for Bitmine. According to Dropstab data, the company has accumulated nearly $9.2 billion in unrealized losses on its ETH holdings, which are currently trading below $1,900. That is, the negative difference between the price at which some of these assets were acquired and the current price that has not yet been realized through sale.
Nevertheless, the company continues to expand its exposure to ETH. On June 1st he announced We purchased an additional 26,497 ETH, bringing our total reserves to over 5.4 million coins.
Similarities to controversial strategic models
This structure is similar to STRC, a preferred stock issued by Strategy to raise capital by providing regular dividends to investors. Comparisons with the company founded by Michael Saylor are therefore inevitable.
It should be noted that STRC was launched as a tool to raise funds through the issuance of preferred shares, and its resources later helped finance Bitcoin (BTC) accumulation strategies.
Since its launch in July 2025, the program has successfully raised approximately $2.52 billion and currently has a nominal value of more than $10.5 billion.
The appeal of this type of product lies in the fact that it provides investors with regular returns while providing indirect exposure to the movement of digital assets that supports a company’s strategy.
It’s worth clarifying that as long as STRC is close to its ideal price of $100, this dividend profitability makes sense. As of the publication of this article, Strategy preferred stock is priced at $94.65.
However, this kind of structure is not without its doubts. According to analysis firm Brofin, this model funds “highly volatile asset accumulation through capital and debt that produces no returns and has strict, recurring obligations with interest and preferred dividends that mature regardless of price.”
This means that these schemes are more vulnerable in prolonged bear markets. If the prices of the assets supporting the strategy decline for an extended period of time (as is currently happening with BTC), companies may find it more difficult to maintain high dividends without issuing new shares or relying on debt.
Actually, from May 25th to 29th, The strategy executed a sale of 32 BTC to meet obligations related to dividends and other financial commitments associated with that financing instrument.
Although this operation accounted for only 0.0037% of the company’s BTC holdings, it sparked controversy This is because it shattered Strategy’s image as a permanent buyer who would never sell a portion of its reserves.
“They were technically selling in 2022, but it was kind of an accounting trick to buy more,” said Leopold Bebchuk, an associate product manager at Strategy until March 2026. So they didn’t see it as a short sell. In this case, they were selling to pay dividends, and if the market is bearish, it gives a signal that the STRC model is not sustainable.”
As these funding models increase, so do questions about the ability of BTC, ETH, or other digital assets to maintain high dividends if they go through an extended bear market period.
(Tag translation) Altcoin
