BitMine is preparing a preferred stock sale of up to $300 million as Tom Lee’s Ethereum treasury company looks to expand its ETH buying program and strengthen the infrastructure behind it. The plan calls for the sale of 3 million preferred shares and links the fundraising directly to ETH purchases, staking, validator operations, and related investments.
According to a preliminary prospectus filed with the SEC on Wednesday, the Series A preferred shares would carry a $100 stated amount if approved by the board. They would also pay a 9.50% annual cash dividend in weekly installments, while BitMine seeks a NYSE listing for the shares under the ticker BMNP.
Ethereum staking as a core business line
BitMine said native ETH staking has become its “principal revenue source,” with 4.7 million ETH staked through its MAVAN platform as of May 25. The company estimated that this stake translates into about $276 million in projected annualized staking revenue.
That income stream matters because BitMine is no longer positioned as a traditional Bitcoin miner. The company has shifted its strategy toward building an Ethereum treasury business, and its ETH holdings crossed $1 billion last year.
BitMine’s latest filing came after another large Ethereum purchase. The company bought 26,497 ETH worth about $52 million, lifting its holdings to 5,416,901 ETH, or about 4.48% of Ethereum’s supply, and leaving it with roughly $446 million in cash.
A steady buying campaign
The preferred stock push follows months of aggressive accumulation. In April, BitMine made a purchase that took its holdings above 5 million ETH, and in May the company added $151 million in ETH after Lee described the token’s drop below $2,200 as an “attractive opportunity.”
A further $237 million purchase followed the next week, moving BitMine to more than 88% of the way toward its goal of owning 5% of Ethereum’s supply. The company’s broader positioning suggests that the latest fundraising is meant to keep that strategy moving without slowing its treasury buildout.
How the dividend model could work
The preferred stock plan stands apart from some earlier crypto-linked financing structures because BitMine can lean on Ethereum staking rewards as a built-in source of income. An April analysis from Alchemy Research said that protocol-native yield could help support cash dividends while allowing the rest of the ETH rewards to compound over time.
The same analysis noted that a larger staked treasury could improve dividend coverage if ETH prices rise, since a higher token price would also increase the dollar value of staking rewards. At the same time, the model still depends on converting those rewards into dollars at favorable prices and at the right time.
Dominick John, an analyst at Zeus Research, said the structure could help “reduce cash drag, support dividend sustainability, and help mitigate common share dilution through on-chain yield generation.” He also said BitMine could generate revenue through staking and MEV optimization, which helps validators capture extra transaction-related rewards.
Tom Lee’s conviction in ETH
The fundraising effort also reflects Lee’s continued confidence in Ethereum as BitMine’s main treasury asset. Ryan Yoon, senior analyst at Tiger Research, said Lee “heavily trusts ETH” and sees it as his “only viable hedge,” while the token’s staking yield gives BitMine a “major differentiator” that could serve as a dividend stream.
That view helps explain why the company keeps pairing large ETH purchases with financing plans that depend on the network’s own yield mechanics. If the board approves the preferred stock sale, BitMine would have a larger capital base to keep expanding its Ethereum position while trying to finance shareholder payouts from staking-related returns.
Read more at: finance.yahoo.com-
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