Ethereum Price Forecast: BitMine's Strategy-inspired stock offering likely to fuel ETH purchases

Ethereum price today: $1,750

• BitMine plans to launch a perpetual preferred stock offering, with a 9.5% cumulative annual dividend.
• The company aims to use the proceeds for corporate purposes, which may include expanding its ETH purchases and staking operations.
• ETH maintains a bearish undertone after bouncing near $1,700.

Ethereum (ETH) is down more than 1.7% over the past 24 hours on Thursday, extending its weekly decline by 12% despite positive feedback following Ethereum treasury firm BitMine Immersion Technologies' (BMNR) plan to launch a Series A Perpetual Preferred Stock.

BitMine to launch Strategy-inspired stock offering

In a Wednesday filing with the US Securities and Exchange Commission (SEC), the firm stated that it is offering 3 million shares of the stock at $100 per share. The product comes with a cumulative 9.5% annual dividend, paid weekly in cash when/if declared by the company's board of directors. Every week the company fails to pay the dividend, it compounds by 0.05%, with a maximum limit of 15% annually until it is paid in full.

BitMine plans to list the stock on the New York Stock Exchange (NYSE) under the ticker BMNP, with trading expected to begin 30 days after its first issuance.

"BMNR intends to use the net proceeds from the offering for general corporate purposes, which may include the acquisition of additional ETH and other digital assets; the expansion of the Company's staking and validator infrastructure, including through MAVAN; working capital; strategic investments aligned with the Ethereum ecosystem and broader digital asset adoption; and/or repurchases of the Company's common stock under its share repurchase program," the firm stated in a Wednesday press release.

The offering follows a playbook similar to that of Bitcoin treasury firm Strategy's perpetual preferred stock, STRC, with an 11.5% dividend.

Several Ethereum community members have previously suggested that BitMine launch such products, arguing that it's better positioned to pay dividends through staking rewards than Strategy's pure Bitcoin holding model.

Strategy disclosed it sold 32 BTC for the first time since 2022 to fund dividend payments for its preferred stock products. Since the sale, risk-off sentiment in Bitcoin has accelerated, with the top crypto briefly falling below $62,000 and sparking a sell-off in the broader crypto market.

In a recent keynote at the Proof of Talk conference in France, BitMine Chairman Thomas Lee noted that ETH digital asset treasuries (DATs) could use staking yields to fund grants for the Ethereum ecosystem.

BitMine shares closed with a 5.8% gain on Thursday.

Ethereum Price Forecast: ETH maintains bearish undertone after bouncing near $1,700

On the daily chart, ETH is maintaining a firmly bearish near-term tone as price holds below the 20-, 50- and 100-day Exponential Moving Averages (EMAs), clustered between roughly $2,030 and $2,245.

The oversold readings on the 14-day Relative Strength Index (RSI) near 19 and the subdued Stochastic around 15 hint that downside momentum is stretched, yet as long as the top altcoin remains capped beneath these EMAs, any rebound would likely be treated as a corrective bounce within a broader downside phase.

On the topside, initial resistance emerges at the horizontal barrier near $1,806, with further supply seen at $1,909, followed by a more significant cap around $2,019 and the 20-day EMA at about $2,027. Above these, the 50-day EMA near $2,133 and the $2,211–$2,244 area form a thicker resistance band, ahead of $2,389 and $2,746.

On the downside, immediate support is located at $1,741, with subsequent cushions at $1,524 and $1,405, where a break would expose deeper losses despite the already-oversold momentum backdrop.

(The technical analysis of this story was written with the help of an AI tool.)