Bitmine to Issue Preferred Shares, Losses on ETH on Paper US$9.2 Billion

Bitmine plans to issue 3 million Series A perpetual preferred shares with a yield of 9.5 percent per year. The move comes amid an unrealized loss of US$9.2 billion from the company's Ethereum holdings. (Photo: The Block)

Bitmine is taking a new step as its Ethereum position is still in the red. The world's largest Ethereum treasury company is offering 3 million Series A perpetual preferred shares with a yield of 9.5 percent per year.

Quoted from The Block, Thursday, June 4, the filing was submitted by Bitmine to the Securities and Exchange Commission (SEC) on Wednesday. The shares have a reference value of US$100 per share.

Perpetual preferred shares are shares that entitle to fixed dividends and have no maturity. In the Bitmine scheme, dividends will be paid every week in cash if the company announces it.

If there are dividends that have not been paid, the value will be subject to compound interest. The interest starts at 9.55 percent and increases by 5 basis points every period, with a maximum limit of 15 percent.

Bitmine also filed for listing the shares on the New York Stock Exchange with the code BMNP. Trading is expected to begin within 30 days of the initial issuance.

Moelis & Company and Cantor were joint lead bookrunners in this offering. The term refers to the parties who help organize and market the issuance of shares to investors.

The net proceeds from the offering will be used for general corporate purposes. Bitmine said the funds could be used to buy additional ETH and expand its staking operations. Staking is the process of locking up crypto assets to help the blockchain network and earn rewards.

Bitmine's move is similar to Strategy's strategy through its perpetual preferred shares STRC. The product offers a dividend of 11.5 percent and is sought after by investors looking for monthly income, while gaining indirect exposure to bitcoin.

Since raising around US$2.52 billion in its initial public offering in July 2025, Strategy's STRC program has grown through subsequent issuances. The total notional value of STRC is now around US$10.5 billion.

However, Bitmine's plans come amid heavy pressure on its ether portfolio.

On June 1, Bitmine announced the purchase of 26,497 ETH. The addition brought its total holdings to 5,416,901 ETH.

According to data from Dropstab quoted by The Block, the company led by Tom Lee is estimated to have incurred an unrealized loss of US$9.2 billion from its ether holdings.

Unrealized losses mean losses on paper. The value only really becomes a loss if the asset is sold at a price lower than the purchase price.

Ethereum prices are also still under pressure. On Wednesday at 21:50 ET, ether was trading at US$1,774, down 4.16 percent in 24 hours. In the past year, its price has fallen 32 percent.

The plan comes as Bitmine is still recording a large paper loss on its ether holdings.