Tom Lee’s company has decided to follow Strategy’s model, using preferred shares to finance Ethereum acquisitions.
The largest corporate holder of Ethereum (ETH), BitMine Immersion Technologies, has filed an SEC application to issue 3 million Series A perpetual preferred shares under the ticker BMNP. The initiative aims to raise $300M.
Hot topic: Bitcoin Price Falls Back to 2024 Levels, Here’s Why Bitcoin Is Going Down
The shares will have a par value of $100 and a fixed cumulative yield of 9.5% annually, with weekly cash dividends. The company plans to list on the New York Stock Exchange under the ticker BMNP.
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Where Will BitMine’s Funds Go?
According to the prospectus, the raised capital will be directed toward:
- Purchasing additional ETH▼$1,790.05 and other digital assets
- Expanding staking and validation infrastructure, including the Made in America Validator Network (MAVAN)
- Working capital
- Strategic investments
- Possible repurchase of common stock
BitMine retains the right to redeem the shares at a premium, 110% within the first 18 months, 105% between 18 and 36 months, and 100% after three years, plus accrued dividends.
Strategy’s Model and Bitcoin
BitMine is clearly copying Strategy’s successful approach with its STRC preferred shares, which yield 11.5%. However, STRC and similar instruments are currently trading below par, which may require rate adjustments to maintain demand.
Read more: What Does Strategy Do? How Michael Saylor Built a Bitcoin Corporate Empire
What Is Happening in the Crypto Market on June 4?
The announcement came at a difficult time for Ethereum. Earlier this morning, the leading altcoin reached a 14-month low of approximately $1,734.
At the time of publication, Ethereum trades at approximately $1,770. The asset has fallen nearly 6% over the past 24 hours and more than 11% over the past week.
BitMine holds 5.42 million ETH, representing 4.49% of total supply. However, its unrealized loss on the position is estimated at nearly $9B.
Despite the downturn, BitMine Chairman Tom Lee remains confident:
“In our understanding, ETH’s price does not reflect the strengthening fundamentals of the network. But this is not surprising — we are in the early stages of crypto spring.”
Learn more: Top Massive Crypto Liquidations in 2026 — What’s Going On with Crypto Market After Billion-Dollar Flushes?
