Bitmine plans to issue $300 million perpetual preferred shares modeled after Strategy, with an annual dividend yield of 9.5%

BlockBeats news, on June 4, according to filings submitted to the US SEC, Bitcoin mining company Bitmine Immersion Technologies announced the issuance of 3 million Series A perpetual preferred shares with an annual yield of 9.50%, each with a par value of $100, with an expected total fundraising amount of $300 million. According to the issuance terms, the preferred shares will have an initial liquidation preference of $100 per share, which may be adjusted in the future according to relevant regulations, but will not fall below $100.

The preferred shares will pay a cumulative dividend at an annualized rate of 9.5%, distributed weekly in cash. Even if the company does not declare dividends or temporarily lacks distributable funds, dividends will continue to accumulate. Bitmine stated that, in the future, the frequency of distributions may be increased depending on circumstances, providing investors with a stable source of cash returns.

In addition, the company holds an early redemption right. Within 18 months after the issuance, Bitmine may redeem the preferred shares at 110% of par value; during the period from 18 months to 3 years, the redemption price is 105% of par value; after 3 years, the shares can be redeemed at 100% of par value. All redemptions will require the payment of any accumulated unpaid dividends. If the number of outstanding preferred shares falls below 25% of the total issued, or if certain tax events occur, the company also has the right to redeem all remaining preferred shares.