BitMine Doubles Down on Ethereum With $300M Stock Offering

BitMine plans to issue $300M in preferred stock to buy more Ethereum, despite current ETH positions being $9 billion underwater during market volatility.

BitMine Immersion Technologies has announced plans to issue 3 million shares of its “9.50% Series A Perpetual Preferred Stock” at a par value of $100 per share. This move signals a massive commitment to the digital asset market even as volatility persists.

The capital raised will be primarily directed toward purchasing additional quantities of Ethereum, the leading altcoin, as well as expanding the company’s validator infrastructure and funding other strategic investments.

Market Correction Fails to Deter Ethereum Accumulation

This announcement comes as Ethereum (ETH) faces significant price swings, trading near its lowest levels in over a year. At the time of writing, the second-largest cryptocurrency is priced at $1,757, reflecting a 6.78% decline over the last 24 hours. This downturn has sparked criticism of BitMine’s aggressive strategy, with social media commentators pointing out that a portion of the company’s accumulated positions is currently facing heavy unrealized losses. Reports suggest that BitMine’s Ethereum position is currently $9 billion underwater.

Rather than reducing its exposure, the company is leaning into the volatility. In recent weeks, BitMine executed its largest purchase of the year, acquiring nearly 112,000 ETH for approximately $237 million. The transaction took place as the asset dipped below the psychological support level of $2,200. Management views these price drops as a prime accumulation opportunity rather than a reason to retreat from their established strategy.

Over $12 Billion in Crypto Exposure

BitMine has evolved into one of the largest corporate entities focused on Ethereum. The company currently controls approximately 5.39 million ETH, which accounts for nearly 4.5% of the network’s total circulating supply.

The total value of its crypto reserves and related investments exceeds $12 billion, positioning the firm among the most significant publicly traded players in the industry. The new preferred shares will offer a fixed cumulative dividend of 9.5% per annum, with payments scheduled on a weekly basis. The company has also applied to list this new issuance on the New York Stock Exchange under the ticker BMNP.

Investor sentiment remains divided regarding the ambitious plan. Supporters see a unique opportunity to gain exposure to the Ethereum ecosystem through a regulated public company. Conversely, critics warn of extreme risk concentration, noting that the vast majority of BitMine’s assets are tied to the performance of a single digital asset.

For now, the company’s message is clear: regardless of short-term market fluctuations, BitMine is increasing its bet on ETH. The firm remains focused on its goal of maintaining its status as the world’s largest corporate holder of the asset, with a long-term target of owning 5% of the total supply.