BitMine Plans $300M Preferred Stock Offering to Bolster ETH Treasury and Staking Operations
Taylor Wilson
BitMine filed with the SEC to issue $300 million in preferred stock funding its ETH treasury expansion — the largest raise since its pivot from Bitcoin mining. Whether staking yields can sustain a 9.50% annual dividend will test the entire thesis.
Where does the $300 million go?
BitMine plans to issue 3 million Series A preferred shares at $100 par value, raising up to $300 million.
Proceeds are earmarked for buying ETH, staking operations, and validator-node infrastructure — the machines that confirm transactions on Ethereum.
If the board approves, shares pay a 9.50% annual cash dividend, distributed weekly. BitMine has applied to list them on the NYSE under ticker BMNP.
How much ETH does BitMine already hold?
Before this filing, BitMine completed a $52 million ETH purchase — 26,497 coins.
Total holdings now stand at 5,416,901 ETH, roughly 4.48% of Ethereum's total supply, plus about $446 million in cash.
This means → the company's stated goal of owning 5% of all ETH is now roughly 88% complete.
How do staking yields support the dividend?
BitMine says native ETH staking — locking ETH into the network to earn rewards — is now its "primary revenue source."
As of May 25, it stakes 4.7 million ETH via the MAVAN platform, projecting annualized staking revenue of about $276 million.
This means → staking rewards could, in theory, cover the preferred dividend with room left over to compound — no need to sell coins to pay shareholders.
How is this fundamentally different from Strategy's Bitcoin treasury model?
Strategy (formerly MicroStrategy) disclosed selling roughly $2.5 million in Bitcoin to pay its own preferred dividends — it has no on-chain native yield and must sell coins to meet obligations.
BitMine's ETH staking generates protocol-level native income. In plain terms = Bitcoin sitting in a vault earns nothing; staked ETH "lays eggs."
Analyst Dominick John argues that if the mechanism works, it can "reduce cash drag, support dividend sustainability, and cut common-share dilution via on-chain yield."
Where is the risk?
The entire structure depends on converting ETH staking rewards to dollars at the right price and the right time — if coin prices fall, the same reward quantity buys fewer dollars.
Tiger Research analyst Ryan Yoon notes the bet ultimately rests on founder Tom Lee's conviction in ETH — "even under pressure, he tends to buy the dip."
This reflects a deeper reality: BitMine's financing structure is not pure financial engineering — underneath it is a directional bet on ETH's long-term value. Staking yield is the edge; price volatility is the vulnerability.
Content is for reference only, not financial advice.