Summary Bitmine Immersion now holds $9.65B in Ethereum, making it the largest corporate ETH treasury with 5.62M ETH staked for ~2.99% yield. BMNR issued 9.50% Series A Perpetual Preferred Stock, raising $280M in gross proceeds but introducing a $350M senior claim and considerable dividend obligations. BMNR trades at a 2.6% discount to adjusted NAV, with market pricing neither ETH upside nor staking compounding into current valuation. I recommend a Buy on BMNR, contingent on disciplined preferred issuance and ETH price recovery, while noting dilution and crypto volatility risks. When I first covered Bitmine Immersion ( BMNR ) last July, the company was still a relatively small Bitcoin miner just transitioning to a digital assets treasury business model. Bitmine had ~$3.3 million in revenue at the time, and the entire investment case for BMNR rested on a freshly announced $250 million PIPE and a pro forma promise of $266 million in combined crypto holdings at the time. It was also the very high of the digital asset treasury narrative and Bitmine's valuation looked stretched, so I leaned cautious and recommended a Hold. Bitmine Immersion portfolio snapshot, June 15, 2026 (Company press release) Today, Bitmine controls around $9.65 billion worth of Ethereum ( ETH-USD ), becoming the largest corporate Ethereum treasury, holding 5.62 million ETH. And I can say that the execution of the treasury strategy has gone well for Bitmine, as the current portfolio stands way higher from when the pivot just began. In addition to the ~$9.65 billion stash in ETH, there is what management calls the moonshot portfolio, basically made up of $88 million worth of Eightco Holdings ( ORBS ) shares and a $180 million stake in Beast Industries. Bitmine also holds a small amount of 204 Bitcoin ( BTC-USD ), with total cash and other marketable securities all worth $502 million, and bringing Bitmine's total treasury value to ~$10.4 billion. Bitmine Immersion staking revenue weekly trend (Company press release ) Bitmine also monetizes its position from staking ETH through the company’s own ETH staking infrastructure known as the Made in America Validator Network (MAVAN), where ~85% (4.7 million ETH) of Bitmine’s ETH stash is currently staked, capturing the network’s average annualized staking yield of ~2.99%, thus potentially generating anywhere between $230 million and $280 million in annualized revenue from the current ETH staked and at ETH’s current ~$1,700 spot price. Bitmine’s staking revenue is highly dynamic, especially in dollar terms, and could increase materially as ETH spot price increases or the amount of ETH Bitmine stakes on MAVAN increases. BMNR's move into digital asset treasuries came at the height of investor enthusiasm for publicly traded crypto treasury companies last year, with a unique selling proposition (for lack of a better term) centered on Ethereum rather than Bitcoin as the primary asset of its treasury strategy. Investors seemed to welcome the idea right away, and despite the growing number of Bitcoin treasury companies raising capital and trading at sizable premiums to their net asset values (NAV) at the time, there was still plenty of appetite for new entrants like Bitmine. Timing and marketing were also important factors behind Bitmine's rapid rise in popularity among digital asset treasury investors. And like many crypto-focused companies that build their story around a well-known public figure, Bitmine brought in Fundstrat co-founder Tom Lee as the public face of its ETH pivot. Tom Lee has long been known as a crypto bull, and his vocal support for Ethereum as a treasury asset has helped draw the right attention to Bitmine. Financing Matters More Than Cost Basis Digital asset treasuries have some of the most interesting capital structures among publicly traded companies. Investors who follow the sector are familiar with how Strategy ( MSTR ) (the company that effectively pioneered the modern digital asset treasury model) has repeatedly tapped equity and debt markets over the years to fund Bitcoin accumulation and has been rolling out preferred stock offerings like nobody's business in the past year, including Strike Preferred Stock ( STRK ), Stride Preferred Stock ( STRD ), Stretch Preferred Stock ( STRC ), and Strife Preferred Stock ( STRF ) and other capital instruments designed to attract different classes of investors while continuing to grow Strategy’s Bitcoin holdings. Among Ethereum treasury companies, Bitmine is the closest to following Strategy's financing playbook so far. Though on a cost basis comparison (measured by the average acquisition cost of their respective treasury holdings), Strategy still holds the upper hand among treasury companies. That should not come as a surprise considering Strategy made its first Bitcoin purchase in 2020 and has executed several BTC acquisitions at substantially more favorable prices compared to newer entrants like Bitmine, which only began its first serious digital asset accumulation campaign last year and in the later stages of the bull market. Bitmine Immersion ETH treasury holdings trend and transaction history (Coingecko) Based on cost basis alone, this piece would have been an easy wrap already, with a bearish rating for BMNR because the 5.62 million ETH stash worth ~$9.65 billion today is massively underwater. Though Bitmine has not released an updated number for its paper loss alongside the latest weekly update , based on historical purchase timelines and ETH’s average spot price at the time of purchase that I have tracked independently, Bitmine's average ETH purchase price sits near $3,000. Bitmine crossed the 3 million ETH milestone last October and bought that initial phase between $2,800 and $4,500. Then the 4 million ETH milestone was crossed in January this year, with early bear market acquisitions settling between $2,500 and $3,150. Of the 5.62 million ETH held today, more than 75% were bought at an average price around $3,500. While Bitmine’s cost basis is an eyesore at the moment, Bitmine’s issuance of the 9.50% Series A Perpetual Preferred Stock ( BMNP ), approved to begin trading on NYSE today, June 16, is one of the most attractive funding vehicles at this juncture for the company. In my view, for digital asset treasury companies, the ability to raise capital, especially when sentiment is weak, and then deploy that capital into opportunistic treasury purchases is more important than historical acquisition prices. I view the capacity to issue preferred securities in the current market climate and attract investor demand as the key differentiator among digital asset treasury companies. Bitmine’s offering was upsized from an initial 3 million shares to 3.5 million shares, which proves investors interest in Bitmine on the one hand, but on the other hand, the terms and mechanics of the preferred would tell what concessions management made and what fresh upside levers or risks BMNR common holders have been further exposed to and if the company is in a position to genuinely benefit from the capital funneled from Wall Street yield chasers. Bitmine 9.50% Series A Perpetual Preferred Stock - How BMNP Changes The NAV Equation On the one hand, the BMNP Series A Preferred Stock issuance has helped Bitmine raise capital without diluting common shareholders and ultimately handed management the opportunity to buy more ETH at a compressed price in the current bear market, which all bodes well for common shareholders if ETH increases in value, but on the other hand the preferred stock has added a 9.5% annual dividend obligation to Bitmine's capital structure and some asymmetric risks for BMNR common shareholders in terms of capital subordination in Bitmine’s liquidation structure and a weekly cash drain. The first thing investor should understand about the raise is that preferred investors acquired BMNP shares at a 1.25x liquidation multiple through an Original Issue Discount, meaning investors effectively paid $80 per share (3.5 million shares × $80 = $280 million in gross proceeds, or $273.8 million in net proceeds after underwriting discounts, commissions, and offering expenses), but they are entitled to a $100 liquidation preference from day one. While $280 million was raised, investors in the preferred offering now hold a $350 million senior claim over Bitmine (a significant $70 million premium to the capital they contributed). And the 9.5% dividend is calculated on the fixed $100 liquidation preference ($33.25 million annual dividend obligation), not the $80 investors paid during the offering. While the base dividend rate is 9.5% payable weekly, there are penalty provisions for missed payments, compounding any accrued arrears with an initial 5 bps increase until it hits a statutory ceiling of 15% annual. The redemption terms also heavily favor the preferred shareholders. Bitmine retains the right to redeem the preferred stock early for cash, as laid out in the preliminary prospectus supplement 424B5 , but doing so is relatively expensive in the early years. Under the offering terms, any redemption within the first 18 months will require Bitmine to pay 110% of the stated amount, or $110 per share in cash, and will force Bitmine to pay $385 million in cash to retire a financing that only brought in $280 million. That premium drops to 105% between 18 months and three years and then further falls to par value after three years of issuance. The point I am trying to make is that while this financing may enable Bitmine to go on an ETH purchase spree at the current depressed ETH price, the preferred financing can still be considered expensive capital from the perspective of a BMNR common shareholder, because Wall Street extracted a 1.25x liquidation preference through the Issue Discount, and the immediate $70 million overhang on top of the gross proceeds. If the total $273.8 million net proceeds were used to buy ETH and staked at the 2.99% yield, they would generate ~$8.20 million in annual staking rewards at current ETH spot price. Subtract that from the $33.25 million fixed cash obligation, and then there is a ~$25 million deficit, which Bitmine’s currently staked assets would actively have to subsidize to cover that remaining ~$25 million dividend demand. While the cash needed to fulfill the dividend obligation does not make this a broken thesis yet, if we consider the ~$230 million to ~$280 million staking revenue from the total staked ETH today being able to cover the $33.25 million total annual dividend obligation by about 6.9x to 8.4x coverage, the main risk I believe the launch of BMNP poses to common shareholders is how much more capital management is willing to funnel through preferred shares and what terms they are willing to concede to Wall Street. In everything we could analyze at this point, management's future appetite for issuing preferred shares remains the biggest variable outside investors' control. And though I am leaning more bullish and recommending a Buy for BMNR in this piece and at the current price, it comes with considerable confidence and trust in management that they will not lean too heavily on preferred shares issuance thereby eroding the share appreciation benefits, like the $4 billion common share buybacks , that BMNR common shareholders are to enjoy. The bullish stance also hinges on the hopes that ETH’s price regains momentum and increases materially towards previous highs in the near future. Ethereum stablecoin market cap dominance (Defillama) Personally, I believe that as for ETH, with stablecoin adoption as well as tokenization of stocks and securities gaining traction like we have never seen, and Ethereum being the most popular network for both real-world asset tokenization and stablecoin issuance, I believe the next bull market phase of the crypto cycle would likely see ETH outperform most top cryptocurrencies. Of the ~$315 billion total stablecoin supply circulating on-chain, Ethereum mainnet holds ~50% ($150 billion+) in market cap. Ethereum remains the primary hub for decentralized finance (DeFi), and thus dominates both retail and institutional tokenization due to its established infrastructure. The market opportunities from these two secular trends give me more confidence in Bitmine's portfolio and strengthen the investment case for BMNR at current prices, particularly given the opportunity to buy ETH at a discount with proceeds from the preferred shares. How BMNR Trades Relative to Underlying NAV At Bitmine’s gross holdings of ~$10.40 billion and total shares outstanding standing at 569.58 million, BMNR gross NAV per share is ~$18.26 ($10.40 billion gross NAV / 569.58 million shares outstanding). Gauging NAV per share against BMNR's current share price around $17.18, BMNR trades at a ~5.9% discount to its ~$18.26 gross NAV. When gross NAV is adjusted for the $350 million BMNP liquidation preference and $1.3 million of debt, NAV attributable to common shareholders stands at ~$10.05 billion ($10.40 billion gross NAV − $350 million liquidation preference − $1.3 million debt), or $17.64 in adjusted NAV per share ($10.05 billion adjusted NAV / 569.58 million shares outstanding). At a ~$9.78 billion market cap currently, this implies that BMNR trades at ~0.97x Price/NAV ($9.78 billion market cap/ $10.05 billion adjusted NAV), and a 2.6% discount to its underlying adjusted NAV. BMNR at 0.97x P/NAV means the market is valuing the company at about 97 cents for every dollar of net assets attributable to common shareholders. Neither the future potential upside from ETH exposure nor the potential compounding of staking income from the staking rewards are being factored in by the market, based on that discount. Further measuring Bitmine’s enterprise value against the value of its ETH stash to see the discount or premium of its ETH treasury, I find Bitmine’s ETH holdings are being priced at a discount by the market. Stripping away total cash and cash equivalents of ~$880 million and adding back total debt of ~$1.3 million, Bitmine’s EV stands around $8.87 billion. Comparing EV against the total ETH holdings worth ~$9.65 billion, Bitmine’s mNAV is effectively ~0.92x, showing that the core ETH holding is being valued at an 8% market discount. Risks I have highlighted the risks associated with BMNR common stock where they fit into the context throughout this piece. In addition to the already-mentioned risks, the common equity $24.5 billion ATM facility still open for management to continue funding ETH accumulation poses an inevitable dilution risk for common shareholders. However, management's preference for preferred share financing at a time when BMNR common stock trades at a discount to NAV partially offsets that risk. While the preferred issuance introduces a senior claim ahead of common shareholders and a fixed dividend obligation, common shareholders may have been spared a more immediate form of value destruction. Had Bitmine raised the same capital through common equity while trading at a discount to NAV, the transaction would likely have diluted NAV per share with immediate effect and resulted in non-accretive additions to the ETH treasury. And the most visible risk is that cryptocurrencies remain a highly volatile asset class, and ETH isn’t immune to the price swings crypto assets face. ETH has already seen ~40% price decline YTD; being the anchor asset of Bitmine’s portfolio means BMNR is also exposed to that volatility. Takeaway The introduction of BMNP preferred shares effectively splits Bitmine into two distinct risk-reward vehicles. The preferred shares now give Bitmine investors a more income-oriented exposure to ETH; BMNP shares offer the dividend but will likely see less sensitivity to NAV and thus face less ETH-linked volatility than BMNR common stock. BMNR common remains the more direct and leveraged vehicle for ETH exposure, with greater upside on ETH rallies but also higher exposure to ETH’s volatility which could mean steeper downsides when ETH underperforms. The success of both securities are anchored to Bitmine's ETH stash. If ETH rallies, the dividends for BMNP become easier to cover and the coverage ratio strengthens further, while for BMNR, an ETH rally means NAV expansion, multiple re-rating, and greater equity upside through the NAV rerating.