Shares of BitMine Immersion Technologies tumbled 10.1% to $16.08 on Thursday as the company priced an upsized $280 million Series A perpetual preferred stock offering, flooding the market with a new class of equity that sits above common shareholders in the pecking order — and doing so on a day when a broad crypto selloff made the pain worse. BitMine Bets $280 Million on Becoming an Ethereum Treasury Giant — But Is the Cost to Common Shareholders Too High?
Shares of BitMine Immersion Technologies (BMNR) cratered 10.1% to $16.08 Thursday after the company priced an upsized preferred stock deal that hands new investors a guaranteed 9.50% annual dividend — while common stockholders absorb the dilution and a brutal crypto selloff drags the sector lower.
The Deal Got Bigger, and So Did the Pain. BitMine priced 3.5 million shares of Series A perpetual preferred stock at $80.00 per share , upsizing from the originally announced 3 million shares . Net proceeds are estimated at roughly $273.8 million after underwriting costs . Perpetual preferred stock never matures and sits above common equity in the capital structure — meaning these new investors get paid first if the company runs into trouble. The preferred shares carry a cumulative 9.50% annual dividend on a $100 stated value , locking BitMine into roughly $26.6 million a year in mandatory dividend obligations before common shareholders see a dime.
The Money Is Going Straight Into Ethereum. BitMine plans to use proceeds to acquire additional Ethereum and other digital assets, expand its staking and validator infrastructure, and potentially repurchase common stock . The company, a Bitcoin miner by origin, is pivoting to become "the leading Ethereum Treasury company in the world."
The strategy draws direct comparisons to Strategy's (formerly MicroStrategy) preferred stock playbook for Bitcoin. The crucial difference: BitMine is borrowing at 9.50% to buy an asset — Ethereum — that was down over 8% on Thursday alone, exposing a dangerous mismatch between fixed obligations and volatile returns.
Timing Amplifies the Risk. The offering lands amid a sharp crypto pullback triggered by stronger-than-expected U.S. jobs data, which dampened hopes for near-term interest rate cuts. Bitcoin fell roughly 3.7%, and Ethereum slid over 8%. BMNR has now dropped from $19.27 to $16.08 — a 16.5% decline — in just five trading sessions. For a company whose thesis depends on Ethereum appreciation to service a $26.6 million annual dividend bill, every down day in crypto makes the math harder.
Common Shareholders Sit at the Back of the Line. The preferred stock will list on the NYSE under ticker BMNP within 30 days , creating a separate security that competes for investor capital. If Ethereum staking yields and price gains fail to cover the 9.50% cost of capital, the company's common equity holders bear the full brunt — owning all the downside while preferred investors collect their fixed coupon regardless.