TLDR
- Bitmine acquired 76,881 ETH worth about $136 million, increasing its Ethereum treasury to 5.62 million ETH.
- The purchase followed Bitmine’s successful $274 million preferred stock offering used to support treasury growth.
- Bitmine reported total crypto, cash, and investment holdings valued at approximately $10.4 billion.
- The company also held 204 bitcoin and $502 million in cash and marketable securities.
- Bitmine’s 9.50% Series A Perpetual Preferred Stock will trade on the NYSE under the ticker BMNP.
- The preferred shares offer a 9.5% annualized dividend and will pay investors weekly cash distributions.
Bitmine Immersion Technologies expanded its Ethereum holdings after completing a $274 million preferred stock offering. The company purchased 76,881 ETH during the past week, valued at about $136 million. As a result, Bitmine increased its treasury holdings to 5.62 million ETH.
Bitmine Expands Ethereum Treasury After New Capital Raise
The latest acquisition followed Bitmine’s preferred stock sale, which raised fresh capital for treasury growth. The company bought 76,881 ETH over seven days and continued its accumulation strategy. The purchase lifted Bitmine’s Ethereum holdings to 5.62 million ETH.
The weekly purchase trailed the previous week’s 126,971 ETH acquisition. However, the transaction showed that the company continues adding ether to its balance sheet. The company had previously discussed slowing purchases as it approached ownership of 5% of Ethereum’s supply.
Bitmine also reported holdings beyond Ethereum. The company held 204 Bitcoin alongside $502 million in cash and marketable securities. It also maintained investments in Beast Industries and Eightco Holdings.
Those assets brought total crypto, cash, and investment holdings to $10.4 billion. The latest figures reflected the company’s broad treasury position. Bitmine disclosed the updated numbers after completing the recent purchase.
Thomas Lee, chairman of Bitmine, addressed the company’s buying activity.
He said, “We are maintaining a somewhat elevated pace of buying as we believe this pullback in ETH prices does not reflect the strengthening of Ethereum fundamentals.” The statement accompanied the treasury update.
Preferred Stock Begins Trading on NYSE
Bitmine completed a $274 million preferred equity offering before the latest ether purchase. The financing introduced a new capital source for treasury expansion. The company structured the security with a 9.5% annualized dividend.
The 9.50% Series A Perpetual Preferred Stock will trade on the New York Stock Exchange. The security will trade under the ticker BMNP. Shareholders will receive weekly cash dividend payments.
The financing approach resembles methods used by Bitcoin treasury companies. Those firms often issue preferred securities and other income-producing instruments. They then use the proceeds to acquire additional digital assets.
Questions recently emerged around dividend funding models used by crypto treasury firms. Lee said Bitmine’s Ethereum staking revenue provides support for its dividend obligations. He pointed to recurring cash flow generated through staking activities.
Lee described the preferred stock as a balance sheet diversification tool. He stated, “The company’s current projected annualized staking rewards of approximately $219 million provide recurring cash flow to support the dividends related to the Series A Preferred shares.” The preferred shares begin trading on Tuesday under the BMNP ticker.
