Tom Lee's Bitmine launches $300M preferred stock with 9.5% yield

BitMine Immersion Technologies (BMNR), an Ethereum treasury company led by Fundstrat co-founder Tom Lee, is launching a $300 million preferred stock offering with a 9.5% annual dividend yield, according to a Wednesday SEC filing. The company is offering 3 million shares of Series A Perpetual Preferred Stock at $100 per share, with dividends paid weekly in cash if declared by the board. The shares will list on the New York Stock Exchange under the ticker BMNR-PA.

The move mirrors the financing strategy of Strategy (formerly MicroStrategy), which has used convertible notes and preferred stock to fund its bitcoin purchases. For crypto treasury firms, preferred stock offers a way to raise capital without diluting common equity holders, while providing income-seeking investors with a fixed dividend. The 9.5% yield is notably high compared to traditional preferreds, reflecting the risk profile of a company holding volatile crypto assets. Traders can monitor BMNR's price action and broader crypto treasury trends on NowPrice's real-time tracker.

Investors will watch the offering's completion and subsequent use of proceeds for Ethereum accumulation. The success of this issuance could set a precedent for other crypto treasury firms seeking alternative funding sources. Market participants will also track Ethereum's price performance and the company's ability to sustain dividend payments amid crypto market volatility. The NYSE listing provides liquidity, but the perpetual nature of the preferred stock means the dividend obligation is ongoing.