Ethereum · BitMine Immersion Technologies · New York · CryptoSlate
Ethereum treasury giant offers 9.5% payout as BitMine paper losses top $8.5 billion
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Thomas Lee's BitMine is turning to the preferred-stock market to raise fresh capital for its Ethereum strategy, offering investors a 9.5% annual payout.
Key facts
- On June 3, the company revealed plans to sell 3 million shares of 9.50% Series A perpetual preferred stock with a $100 stated amount, creating a potential $300 million raise
- The preferred shares also include a liquidation preference that begins at $100 and adjusts based on a market-price formula, while never falling below $100
- BitMine can redeem the shares at 110% of the stated amount during the first 18 months, 105% from 18 months to three years, and 100% after three years, plus accumulated and unpaid dividends
- Strategy’s STRC preferred is a variable-rate product designed to help keep the shares trading near their $100 stated amount
Summary
01 BitMine plans to sell 3 million perpetual preferred shares, raising up to $300 million for its Ethereum treasury strategy. 02 The 9.5% payout gives BitMine fresh capital to buy ETH and expand staking, while adding about $28.5 million in yearly dividend costs. 03 But its ETH losses have topped $8 billion, and preferred dividends may rely on cash, sales, or future financing if staking falls short. On June 3, the company revealed plans to sell 3 million shares of 9.50% Series A perpetual preferred stock with a $100 stated amount, creating a potential $300 million raise.