Summary BMNR is launching a $300 million, 9.50% Series A Perpetual Preferred Stock to raise capital without further diluting common shareholders. Staking revenues exceeded $10 million last quarter and could approach $300 million annually when Ethereum accumulation is complete. BMNR likely trades at a discount to its asset value, and preferred equity issuance introduces new risks similar to those seen with Strategy (MSTR). Over the past couple of years, there has been an increasing trend of companies deciding to hold cryptocurrencies. Some of them have made this space their actual business, such as Bitmine Immersion Technologies ( BMNR ). The company that's looking to own 5% of Ethereum has branched out into other investments as well but is primarily focused on this one particular crypto. On Wednesday, the company announced it would launch a new preferred equity class (BMNP), allowing it to raise even more capital. Previous Coverage of the Name The last time I took a look at Bitmine was back in January, right after the company had announced a new stake in Beast Industries. Management had been looking at ways to branch out and build out a portfolio of investments, so it took a $200 million stake in the YouTube creator's company. As Bitmine has continued to build its Ethereum stake since, the recent fall in cryptocurrency prices has taken a toll on shares. Since that January article, the stock is down more than 41%, while the S&P is up more than 10%. A New Way to Raise Capital To fund its Ethereum purchases, Bitmine has primarily relied on sales of its common stock. As of July 1st, 2025, there were only about 4.3 million shares outstanding. However, based on information from the latest 10-Q filing , that number was up to more than 537 million as of mid-April 2026. That number could be even higher given any further equity sales to facilitate Ethereum purchases. As of that 10-Q filing, there was still around $5.5 billion worth of stock that could be sold under its at-the-market sales program. Last year, we saw fellow crypto holding company Strategy ( MSTR ) issue multiple preferred share classes as a way to raise new capital. The company has raised well over $15 billion since, but that's also put Strategy on the hook for nearly $1.7 billion in annual payments to those preferred holders. Recently, Strategy sold a very small amount of Bitcoin to help with some of those payments, and that's resulted in crypto prices tumbling this week. Wednesday's news was that Bitmine Immersion has decided to follow in those footsteps, launching BMNR's 9.50% Series A Perpetual Preferred Stock (BMNP). This preferred class is targeted for weekly dividend payments, although those interested should read the prospectus for a full detail of what's happening with those payouts. It's also important to point out that for strategy, its preferred "dividends" were actually treated as "returns of capital" for tax purposes, so interested investors should be aware of those potential tax consequences. Earlier this week, Bitmine put out its usual weekly update that detailed its Ethereum holdings were over 5.4 million. The company is about 90% of the way through its goal to own 5% of the cryptocurrency, a point that is expected to be hit sometime this year. This new preferred class allows a fresh injection of capital without diluting common holders further, but it does come with an extra cost over time. Bitmine also has a share repurchase plan in place, should it choose to use some of its available cash to buy back its common shares. Unlike Strategy, which doesn't gain anything tangible just from holding Bitcoin, Bitmine does generate some revenue from staking its Ethereum holdings. Staking revenues were over $10 million in the February-ending quarter, and that number could grow to almost $300 million a year when the full staking process is complete. Bitmine did report an operating loss of over $3.84 billion in its latest quarter, primarily due to write-downs of its crypto holdings. The Current Valuation Picture Based on the share count from the 10-Q and Wednesday's closing price, Bitmine had a market cap of a little more than $9 billion. However, given where crypto prices were trading at 11:45 PM that night, the company had a total cash and investments pile of roughly $10.35 billion when you throw in its Bitcoin holdings as well as its Beast and Eightco Holdings ( ORBS ) stakes. Of course, if the company has sold more shares since the 10-Q filing, the market cap could be closer to the actual asset value here. If we assume that the current discount is correct, however, it has grown about half a billion dollars since my previous article. That's not uncommon in this space, however, given the rise in skepticism over this business strategy, as we've seen Strategy trade at a discount to its holdings at times. However, for times last year when I first was looking at Bitmine, it appeared that the name was trading at a sizable premium to its holdings. Final Thoughts and Recommendation Bitmine Immersion announced some interesting news on Wednesday when it filed for an offering of preferred shares, which it used to bring in nearly $275 million in cash. Like we saw with Strategy, this is a way to bring in cash without further diluting common shareholders, but it does have an annual cost. For now, the annual payments required are a sizable portion of the staking revenues that Bitmine is generating. Interestingly enough, Bitmine has both an at-the-market equity sales program and a share repurchase plan active. Thus, the company has several options here for this new capital, and it's almost to its 5% Ethereum ownership goal. I'm continuing to rate this stock as a hold here today. As I've said multiple times previously and with others like Strategy, your view of the stock here depends on how you view the crypto space. If you are a long-term believer that the prices of Ethereum, Bitcoin, etc., will soar, then this is a name you may want to be in, although you might be better off just buying an ETF focused on a specific cryptocurrency. Lately, Strategy investors have gotten worried over the amount of preferred dividend payments, so Bitmine's entrance into the preferred equity space does add another potential risk to the stock.
