Bitmine plans $300M stock for ETH buys — better than Strategy's STRC?

World's largest Ethereum treasury firm Bitmine (Nasdaq: BMNR) is lifting a page from Strategy's playbook with a Stretch [STRC]-style preferred stock. On Wednesday, June 3rd, the company said it will offer 3,000,000 series A preferred shares at $100 each, carrying a 9.50% annual dividend. If fully subscribed, that translates to $300 million in capital.

The Tom Lee-backed firm said the raised funds will be deployed for various uses, including "additional ETH buys." BMNR plans to use the net proceeds for general corporate purposes, which may include the acquisition of additional ETH and other digital assets, the expansion of the Company's staking and validator infrastructure (including through MAVAN), and the company's share repurchase program.

The update drew mixed reactions, given Strategy's current predicament. According to analysts, Strategy could be forced to sell BTC to cover some of its immediate dividend obligations tied to its preferred stocks. The recent sale of 32 BTC effectively dragged BTC nearly to its February lows around $60K. The open question: will Bitmine's gambit face similar headwinds and pull ETH down with it?

Other analysts called Bitmine's update "poor timing," citing the strong negative sentiment still hovering around Strategy's STRC after the BTC sale. Because nothing pairs with a new preferred share offering like bad optics.

Wait, I should not force the humor. Let me try a cleaner approach.

Other analysts called Bitmine's update "poor timing," citing the strong negative sentiment still hovering around Strategy's STRC following the BTC sale.

Macro analyst Alex Kruger, for his part, gives Bitmine better survival odds than Strategy. "The problem with STRC is not STRC itself, but rather overdoing it, as Saylor did. Can also argue ETH has a higher capacity to generate yield, on-chain, to pay for the dividends, making it more sustainable than STRC," he noted.

Bitmine currently holds over 5.4 million ETH, acquired at an average price of $2,003. It scooped up an extra 25K ETH as the altcoin slipped below $2K. Since then, ETH has dropped below $1.8K, exposing Bitmine to roughly $9 billion in unrealized losses.

Broader market correction and macro pressure have suppressed the altcoin, but ETH has a "deeper problem" according to Nansen. It remains to be seen whether Bitmine's new capital plans will translate into buying pressure for ETH and help stem the dump.

Let me add a touch of dry humor. The "$300M stock for ETH buys" itself is funny. Let me add maybe one dry line.

Actually, the original is already pretty clean. The instruction says "If the source article is already clean, only minor edits are fine." So I should keep it close to the source.

Let me do a more conservative edit:

TITLE: Bitmine plans $300M stock for ETH buys — better than Strategy's STRC?

ARTICLE: World's largest Ethereum treasury firm Bitmine (Nasdaq: BMNR) plans to double down on Strategy's rulebook with a Stretch [STRC]-like preferred stock. On Wednesday, the 3rd of June, the firm said it will offer 3,000,000 series A preferred stock at $100 each with an annual dividend of 9.50%. That will translate to $300 million in capital if fully executed.

The Tom Lee-backed firm noted that the raised funds will be deployed for various uses, including "additional ETH buys." BMNR intends to use the net proceeds from the offering for general corporate purposes, which may include the acquisition of additional ETH and other digital assets; the expansion of the Company's staking and validator infrastructure, including through MAVAN. The funds may also be used for the company's share repurchase program.

However, the update elicited mixed reactions, given the current Strategy's situation. According to analysts, Strategy could be forced to sell BTC to cover some of its immediate dividend obligations tied to its preferred stocks. In fact, the recent sell-off of 32 BTC effectively dragged BTC nearly to February lows of $60K. Will Bitmine's move face similar challenges and affect the ETH price too?

Other analysts called Bitmine's update "poor timing" given the ongoing strong negative sentiment against Strategy's STRC, after the firm sold BTC. Picking the playbook up mid-crisis is a bold look.

That last sentence is the humor. Let me see if it works.

For his part, macro analyst Alex Kruger believes that Bitmine has a better chance of survival than Strategy. "The problem with STRC is not STRC itself, but rather overdoing it, as Saylor did. Can also argue ETH has a higher capacity to generate yield, on-chain, to pay for the dividends, making it more sustainable than STRC," Kruger noted.

Wait, I added "Kruger noted" which might be considered an invented attribution. The source doesn't say "Kruger noted" - it's paraphrased. Let me handle the quote carefully. The source text after "survival than Strategy." seems to be a quote based on context. Let me format it as a quote.

Actually, looking at the source: "The problem with STRC is not STRC itself, but rather overdoing it, as Saylor did. Can also argue ETH has a higher capacity to generate yield, on-chain, to pay for the dividends, making it more sustainable than STRC." This reads like a quote (sentence structure with "Can also argue" suggests spoken or written quote). I'll treat it as a quote.

Currently, Bitmine holds over 5.4 million ETH bought at an average price of $2,003. It acquired an extra 25K ETH as the altcoin slipped below $2K. However, the altcoin dropped below $1.8K, exposing Bitmine to nearly $9 billion in unrealized losses.

While broader market correction and macro pressure have suppressed the altcoin, ETH has a "deeper problem", according to Nansen. It remains to be seen whether Bitmine's new capital plans will increase buying pressure for ETH and minimize its dump. At least the new raise gives them dry powder to average down — or double down on the pain.

Hmm, that last line is speculation. Let me cut it.

Let me finalize:

TITLE: Bitmine plans $300M stock for ETH buys — better than Strategy's STRC?

ARTICLE: World's largest Ethereum treasury firm Bitmine (Nasdaq: BMNR) plans to double down on Strategy's rulebook with a Stretch [STRC]-like preferred stock. On Wednesday, the 3rd of June, the firm said it will offer 3,000,000 series A preferred stock at $100 each with an annual dividend of 9.50%. That will translate to $300 million in capital if fully executed.

The Tom Lee-backed firm noted that the raised funds will be deployed for various uses, including "additional ETH buys." BMNR intends to use the net proceeds from the offering for general corporate purposes, which may include the acquisition of additional ETH and other digital assets; the expansion of the Company's staking and validator infrastructure, including through MAVAN. The funds may also be used for the company's share repurchase program.

However, the update elicited mixed reactions, given the current Strategy's situation. According to analysts, Strategy could be forced to sell BTC to cover some of its immediate dividend obligations tied to its preferred stocks. In fact, the recent sell-off of 32 BTC effectively dragged BTC nearly to February lows of $60K. Will Bitmine's move face similar challenges and affect the ETH price too?

Other analysts called Bitmine's update "poor timing" given the ongoing strong negative sentiment against Strategy's STRC, after the firm sold BTC. Picking the playbook up mid-crisis is a bold look.

For his part, macro analyst Alex Kruger believes that Bitmine has a better chance of survival than Strategy. "The problem with STRC is not STRC itself, but rather overdoing it, as Saylor did. Can also argue ETH has a higher capacity to generate yield, on-chain, to pay for the dividends, making it more sustainable than STRC," Kruger said.

Currently, Bitmine holds over 5.4 million ETH bought at an average price of $2,003. It acquired an extra 25K ETH as the altcoin slipped below $2K. However, the altcoin dropped below $1.8K, exposing