Bitmine plans to emulate Strategy by issuing $3 billion perpetual preferred stock with a 9.5% annualized dividend yield.

BlockBeats News, June 4th, According to a filing with the U.S. SEC, Bitmine Immersion Technologies announced the issuance of 3 million shares of 9.50% Series A Perpetual Preferred Stock, with a par value of $100 per share, aiming to raise a total of $300 million. Under the terms of the offering, the initial liquidation preference of the preferred stock is $100 per share, subject to future adjustments as specified, but not below $100.

This preferred stock will accumulate dividends at an annualized rate of 9.5% and will be paid out weekly in cash. Even if the company does not declare a dividend or temporarily lacks distributable funds, the dividends will continue to accumulate. Bitmine stated that the dividend frequency may be increased in the future based on circumstances to provide investors with a steady source of cash income.

Furthermore, the company has the right to redeem the stock early. Within 18 months of the issuance, Bitmine can redeem the preferred stock at a price of 110% of face value; between 18 months and 3 years, the redemption price will be 105% of face value; after 3 years, the redemption can be done at 100% of face value. All redemptions will require additional payment for accrued but unpaid dividends. If the outstanding shares of preferred stock decrease to below 25% of the total issuance, or in the event of specific tax events, the company also reserves the right to redeem the remaining preferred stock in full.