BitMine has priced preferred shares carrying a 9.5% dividend rate to raise capital specifically for Ethereum purchases, the company announced this week. The upsized offering follows the same blueprint as Strategy's Bitcoin-heavy treasury play, but swaps the top cryptocurrency for the second-largest.
A familiar playbook, a different coin
Strategy turned heads by loading up on Bitcoin via convertible notes and equity raises. BitMine is trying the same trick, just with Ether. The preferred shares, paying 9.5% annually, are the tool of choice this time. The company said the offering was upsized — a sign of strong demand, though it didn't disclose the final raise size.
Why Ether?
BitMine didn't explain its reasoning publicly. But mining firms have been under pressure to diversify revenue as Ethereum's shift to proof-of-stake cut off their primary income stream. Holding Ether directly could let BitMine benefit from spot price gains and staking yields — something mining Bitcoin alone doesn't offer.
What 9.5% means
A 9.5% dividend is a steep cost for capital. For comparison, most crypto corporate bonds yield far less. The rate reflects both the risk of the mining sector and the fact that preferred shares sit below debt in the capital structure. Buyers are betting BitMine's Ether stash will outperform that cost.
The company now has cash to start accumulating Ether. No timeline was given, but the funds are likely to be deployed in the coming weeks. Whether other miners follow BitMine's lead — or stick to Bitcoin — is the open question.
