Bitmine unveils $300M preferred stock as ETH nears 14-month low

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Bitmine unveils $300M preferred stock as ETH nears 14-month low — Image source: Unblock Media

Taps staked ETH income to back fixed-rate preferred stock
Sees common shares drop as market reacts to crypto treasury financing in Ether slump

On June 4, 2026, CoinDesk reported that Bitmine Immersion Technologies announced a $300 million public offering of its 9.5% Series A Perpetual Preferred Stock, priced at $100 per share with weekly dividends. The company structured the offering to deliver fixed income using proceeds from its significant staked Ether (ETH) holdings and targeted both institutional and retail investors.

Bitmine’s preferred stock uses income generated by 4.7 million staked ETH, which accounts for roughly 4.49% of current Ethereum supply. The company is pursuing this financing method despite carrying almost $9 billion in unrealized losses as the price of ETH reached a 14-month low of $1,734.

The launch of Strategy’s Bitcoin-backed Stretch (STRC) perpetual preferred stock in July 2025 set a precedent for this approach. According to an SEC filing from May 2026, Strategy amassed an $8.5 billion market cap in its perpetuals, with retail investors making up around 80% of holders.

Bitmine’s offering follows an emerging trend of crypto treasury operators issuing stable, income-generating securities. These structures let companies with large token reserves raise capital at scale, especially in challenging market conditions. Bitmine plans to use the proceeds for additional ETH accumulation, expanding staking operations through the MAVAN (Made in America Validator Network) initiative, and potentially funding common share buybacks.

Investors responded cautiously to Bitmine’s announcement. The company’s common stock dropped nearly 6% to $16.90, its lowest point since pivoting to an Ethereum-focused strategy in mid-2025. CoinDesk notes this reflects skepticism amid fragile altcoin market sentiment and ongoing Ether volatility.

As of June 4, 2026, 22:09 UTC, Ethereum (ETH) is trading at $1,753.28, with a -4.8% change in 24-hour trading volume, according to CoinMarketCap.