Bitmine Immersion BMNR announced Wednesday it will issue preferred shares to raise $300 million [1].
The move signals a growing trend of corporate entities using equity markets to aggressively accumulate digital assets. By offering high-yield dividends to attract capital, Bitmine is attempting to replicate the treasury growth model popularized by MicroStrategy and Michael Saylor.
The company plans to offer three million shares at a price of $9 each [3]. These preferred shares will carry a dividend yield of 9.5% [1]. Bitmine intends to use the proceeds from this offering to purchase more Ethereum, further expanding its corporate treasury [1], [2].
This strategy aims to tap new sources of funding to increase the company's exposure to the cryptocurrency market. The approach mirrors a specific playbook of leveraging balance sheets to acquire volatile assets, a method that has drawn both praise and sharp criticism from financial analysts.
Peter Schiff criticized the move, suggesting the company is following a flawed financial model. "Bitmine Immersion BMNR is borrowing a page from Saylor's Ponzi playbook," Schiff said [4].
Despite the criticism, the offering allows Bitmine to secure capital without the immediate pressure of traditional debt repayment schedules. The success of the raise depends on investor appetite for the 9.5% yield in exchange for the risks associated with Ethereum's price volatility [1].
“Bitmine Immersion BMNR is borrowing a page from Saylor's Ponzi playbook.”
Bitmine's strategy represents a shift toward 'treasury management' as a primary business driver. By issuing preferred stock to buy Ethereum, the company is essentially betting that the long-term appreciation of the cryptocurrency will outweigh the cost of the 9.5% dividend payments to shareholders.
