Bitmine Immersion Technologies Inc. (AMEX:BMNR) shares fell 5.6% in premarket trading on Friday after the company announced the pricing of an enlarged preferred stock offering expected to raise $280 million.
The digital asset-focused company increased the size of the transaction from the previously announced 3 million shares to 3.5 million shares of its 9.50% Series A Perpetual Preferred Stock.
Offering Priced at $80 Per Share
The preferred shares were priced at $80.00 each, with the transaction expected to close on June 10, 2026, subject to customary closing conditions.
Following underwriting discounts, commissions and other related expenses, Bitmine estimates net proceeds of approximately $273.8 million.
Proceeds Target Ethereum Expansion and Corporate Initiatives
Management said the capital raised will be used for a range of corporate purposes.
Potential uses include the acquisition of additional ETH and other digital assets, investments in staking and validator infrastructure through MAVAN, working capital requirements, strategic initiatives across the Ethereum ecosystem and possible share repurchases.
The financing provides the company with additional flexibility as it seeks to expand its exposure to blockchain and digital asset opportunities.
Preferred Shares Carry 9.50% Dividend Rate
The newly issued Series A Preferred Stock will pay cumulative dividends at a fixed annual rate of 9.50%, based on a stated value of $100 per share.
Dividends will accrue continuously and, when approved by the board of directors, will be paid in cash on a weekly basis in arrears.
The company also retains the option to distribute dividends more frequently than once per week if it chooses.
Redemption Terms Vary Over Time
Bitmine has established a tiered redemption structure for the preferred shares.
If redeemed within the first 18 months following issuance, the company will pay 110% of the stated value, plus any accrued and unpaid dividends.
The redemption price falls to 105% of the stated value between 18 months and three years after issuance.
After three years, the preferred stock becomes redeemable at 100% of its stated value, together with any accumulated unpaid dividends.
Liquidation Preference Linked to Market Performance
The Series A Preferred Stock will initially carry a liquidation preference of $100 per share.
However, that value may be adjusted over time based on market trading prices, while remaining subject to a minimum floor of $100 per share.
NYSE Listing Planned Under New Ticker
Bitmine has applied to list the preferred shares on the New York Stock Exchange under the ticker symbol “BMNP.”
Trading is expected to begin within 30 days of the issuance date.
The offering is being led by Moelis & Company and Cantor, which are acting as joint lead bookrunners for the transaction.
The enlarged fundraising provides Bitmine with substantial new capital as it continues to pursue growth opportunities tied to Ethereum and the broader digital asset ecosystem.