Key Takeaways:
BitMine Immersion Technologies moved to raise $300 million through a preferred stock offering, testing investor appetite for the Ethereum treasury model as the firm's shares trade 88% below their 52-week high.
The company filed a prospectus with the U.S. Securities and Exchange Commission on Wednesday for the sale of dividend-paying preferred shares, according to the filing. BitMine, which holds 5.42 million Ether worth roughly $10.8 billion, has been the most aggressive corporate buyer of the token this year, acquiring more than 1 million ETH since January.
"In our view, ETH prices are not reflecting the strengthening of Ethereum fundamentals, but then again, this is not surprising given we are in the early stages of crypto spring," BitMine Chairman Tom Lee said in a statement Monday, defending the firm's accumulation strategy as Ether traded below $2,000.
The preferred stock sale could dilute existing common shareholders, adding downward pressure on BMNR, which already sits 44% below its 200-day moving average at $33.16. The stock changed hands around $19.02 on Monday, down 34% over the past six months. A death cross that printed in January — when the 50-day SMA crossed below the 200-day SMA — remains active, with resistance at $22 near the 100-day SMA.
BitMine's latest weekly purchase of 26,497 ETH worth about $53 million marked a sharp slowdown from the prior week's 112,000 ETH haul, as Lee signaled the firm would moderate accumulation near its goal of owning 5% of Ethereum's circulating supply. The company now holds 4.49% of the network's total supply of about 120.7 million ETH, according to CoinGecko data.
The capital raise comes as the broader crypto treasury model faces scrutiny. Strategy Inc., the largest corporate Bitcoin holder with about $60 billion in BTC, sold $2.5 million worth of Bitcoin last week — its first sale since 2022 — sending MSTR shares to a 45-day low. Meanwhile, Hyperliquid Strategies' stock has surged to record highs as HYPE flipped Dogecoin to enter the top 10 cryptocurrencies by market capitalization, prompting comparisons that have weighed on BitMine's relative performance.
Beyond its ETH holdings, BitMine reported $446 million in cash, 203 Bitcoin valued at $14.5 million, and stakes in Beast Industries and Eightco Holdings. The company's MAVAN staking platform generates roughly $258 million in annualized revenue, with projected rewards approaching $300 million annually, according to the firm.
If the $300 million preferred offering is deployed to acquire additional Ether, it could reinforce the ETH treasury thesis. If it signals capital needs beyond accumulation, it may accelerate the stock's decline. The filing provides no explicit use-of-proceeds breakdown.
This article is for informational purposes only and does not constitute investment advice.
