BitMine offers 9.5% preferred to fund ETH buys amid $8B loss

BitMine Immersion Technologies filed to offer 3 million shares of 9.50% Series A perpetual preferred stock at $100 per share, seeking roughly $300 million. The company’s registration statement says proceeds will be used to buy ether, increase staking activity and expand its MAVAN validator platform. Moelis & Company and Cantor Fitzgerald are listed as joint lead bookrunners and the shares are expected to trade under the ticker BMNP pending NYSE approval.

The preferred carries a $100 stated amount and a 9.50% dividend. The shares are perpetual, with no scheduled maturity, and the dividend will be payable unless the company redeems the shares.

The filing reports BitMine holds more than 5 million ETH, with a large portion staked to earn protocol rewards. The company cites estimated unrealized losses of more than $8 billion, reflecting current ether prices that are well below much of the firm’s purchase history.

Company leadership characterized the paper losses as linked to market swings. Chairman Tom Lee described the unrealized losses as figures that would change with a market recovery.

The financing follows a model used by other public digital-asset treasury firms that sell dividend-bearing preferred shares and use proceeds to buy tokens. The filing also notes some proceeds may be used for general working capital and potential repurchases of common stock.

The 9.50% dividend is offered while ether trades near multi-month lows. The registration does not set a timetable for completing the offering.

BitMine’s filing comes as a number of firms holding large token treasuries have returned to capital markets to raise funds amid lower cryptocurrency prices.