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- Bitmine plans to raise capital through a public offering of 3 million preferred stock shares.
- The company intends to expand its Ethereum holdings, staking operations, and digital asset infrastructure.
- The preferred stock offers a 9.5% annual dividend rate and several investor protection features.
Bitmine Immersion Technologies has announced plans to offer 3 million shares of its 9.50% Series A Perpetual Preferred Stock in a public offering. The company said the transaction remains subject to market conditions and other customary requirements.
This is happening against the backdrop of the continuous expansion of Bitmine in the digital assets space. The company will use the net proceeds to support key corporate initiatives and advance its long-term growth strategy.
It plans to use the funds to purchase Ethereum and other digital assets, expand its staking and validator operations, pursue Ethereum-related opportunities, and potentially repurchase shares under its buyback program.
Bitmine Expands Focus on Ethereum Opportunities
This move demonstrates that the company prioritizes the opportunity for profit from Ethereum as other businesses compete for involvement in the crypto asset infrastructure and staking solutions. The preferred stock features a constant dividend yield of 9.50% on an annual basis for an assumed dollar value of $100 per share.
The company will accumulate dividends and pay them in cash when its Board of Directors declares them. It will distribute preferred-share dividends weekly in arrears, although it may choose to make payments more frequently in the future.
The company designed this structure to provide shareholders with a steady income stream and flexible dividend payments. If it misses a dividend payment, shareholders will earn additional dividends on the unpaid amount. The additional dividend rate escalates annually, but it cannot exceed 15%.
Bitmine Sets Redemption Terms for New Preferred Shares
Bitmine will have the option to call back its preferred stock under the following terms. In the first 18 months since the issuing date, Bitmine has the option to call back its shares at 110 percent of the stated value. Thereafter, the redemption price reduces to 105 percent and finally to 100 percent after three years.
Additionally, Bitmine has the option to buy back all its outstanding preferred stocks upon the occurrence of any specified tax-related events or upon the number of shares falling below a predetermined level. Additional safety to investors lies in the fundamental change clause, which allows an investor to demand the buyback of its shares in case of a significant corporate event.
The preferred shares have been filed for listing at the New York Stock Exchange under the trading symbol BMNP. Assuming that the listing is successful, trading should start 30 days after the issuance date. The joint lead book-runners in the deal are Moelis & Company and Cantor.
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