BitMine Tests Saylor’s Capital Strategy While Sitting on $8 Billion ETH Loss

BitMine Immersion Technologies (BMNR) announced plans to sell 3 million shares of 9.50% Series A Perpetual Preferred Stock at $100 each.

The structure closely mirrors the financing model used by Michael Saylor’s MicroStrategy to buy crypto.

A Familiar Playbook

Digital asset treasury firms raise capital in public markets, then buy tokens with the proceeds. Strategy (MSTR) pioneered the approach with Bitcoin (BTC), and the firm has increasingly been using its preferred stock STRC to fund its buys.

BitMine’s filing now seeks to replicate the same machinery. The preferred stock carries a $100 stated amount.

The firm intends to direct proceeds toward more ETH purchases, staking, and validator expansion through MAVAN. The company also flagged working capital needs and potential common stock buybacks.

Moelis & Company and Cantor Fitzgerald are serving as joint lead bookrunners. The shares are expected to trade under the ticker BMNP, pending NYSE approval.

Meanwhile, BitMine is not alone in following the format. Bitcoin treasury peer Strive (ASST) also has its own dividend-paying preferred, SATA, at a 13% rate.

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BitMine Preferred Stock Offering Comes as ETH Falls Below $1,800

The timing is notable. Digital asset treasury firms have come under strain as crypto prices retreated, prompting several to seek new funding sources. A 9.50% dividend signals the premium BitMine must pay to attract buyers in a weaker market.

The firm built the largest Ethereum treasury through aggressive accumulation, with holdings exceeding 5 million ETH. Much of that stack is staked.

Ethereum (ETH) traded at $1,765, down nearly 5% over 24 hours, according to BeInCrypto Markets data. At those levels, BitMine sits deep underwater on its average purchase price.

According to data from CryptoQuant, the company’s unrealized losses have exceeded $8 billion. Chairman Tom Lee has previously downplayed the ETH losses, framing them as paper figures that recover with the market.

The coming weeks will test whether investors will fund an Ethereum bet at a steep yield while the underlying asset sits near multi-month lows. The answer may reveal how much appetite remains for the treasury model that Saylor made famous.

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