How BMNP's Dividend Rate Is Set: Fixed Income, Weekly Payments, and Ethereum Staking

Every other instrument I track is, when you strip it back, a Bitcoin bet wrapped in a preferred share. BMNP isn't. Its income comes from Ethereum — specifically the staking rewards Bitmine earns on the largest corporate ETH pile in the world — and almost everything about how the dividend works is built differently too. The rate is fixed at 9.50% rather than monthly-adjusting, payments land weekly, and a redemption ladder does the price-anchoring job that STRC and SATA hand to their rate mechanism. BMNP — Series A Perpetual Preferred Stock from Bitmine Immersion Technologies — is expected to start trading on the NYSE on or around 10 June 2026, so this is a look at how it's built rather than how it's traded.

The company behind it

Bitmine Immersion Technologies (NYSE: BMNR) started life as a Bitcoin miner running immersion-cooled rigs, then pivoted hard through 2024–25 — selling down the mining business and ploughing the capital into Ethereum, much as Strategy did with Bitcoin. By early 2026 it was the largest corporate holder of ETH in the world. As of 28 February 2026 it held over 4.47 million ETH — about 3.71% of the circulating supply, worth roughly $8.8 billion — alongside 195 BTC, an $880 million cash pile and a $180 million stake in Beast Industries, for around $9.9 billion in total assets. The stated ambition is to own roughly 5% of all ETH.

The piece that matters for BMNP is what Bitmine does with that ETH. In March 2026 it launched MAVAN — its Made in America VAlidator Network — a proprietary institutional staking platform; by May it had more than $14 billion of ETH staked through it, and it bought infrastructure provider Pier Two Holdings to deepen the operation. This is a genuinely growing business: quarterly revenue hit $11 million for the three months to 28 February 2026, up from $1.5 million a year earlier, driven by staking and ETH option income. The BMNP raise — about $274.8 million net — is earmarked for more ETH and more MAVAN.

A fixed rate, not a monthly adjustment

The biggest structural break from STRC and SATA is that BMNP's 9.50% rate is fixed at issuance. There's no VWAP band table, no algorithmic trigger, no published target range that nudges the rate up or down as the price moves around $100. STRC runs a strict four-band VWAP rulebook; SATA leaves it to board discretion within a loose $99–$101 intention. BMNP is closest to SATA — the board can adjust the rate in future — but it goes further by publishing no mechanism at all. The 9.50% is a starting coupon, not a peg.

That fixed rate is best read together with the issue price. Bitmine priced BMNP at $80 — 20% below the $100 stated amount, the very same structure Strive used for SATA's $80 IPO. At $80, a 9.50% stated rate is an effective yield of about 11.875% on cost (9.50 ÷ 80). That's the trick: the deep discount lifts a modest-looking headline rate into the same neighbourhood as STRC (11.50% at par) and SATA (13% at par). At ~11.875% effective, BMNP slots in between the two on day-one yield — and asks you to buy the Ethereum thesis on top.

Weekly payments

BMNP pays weekly, in arrears — 52 payments a year, each off a record date 10 days before payment. At 9.50% on the $100 stated amount that's roughly $0.183 a share a week (9.50 ÷ 52), and Bitmine keeps the option to pay even more often if it wants. On cadence the three line up neatly: SATA pays daily (every NYSE business day from 16 June 2026, ~250 a year), BMNP weekly, STRC monthly. One quirk worth noting — BMNP's weeks run on the calendar, not the exchange, so payments keep coming whether or not a given day is a NYSE trading day. For anyone reinvesting, 52 cycles a year compounds meaningfully faster than 12; for anyone living off the income, it's simply a steadier drumbeat.

What actually funds it: Ethereum staking

Bitmine is blunt in its prospectus about where the money comes from: it "expects to fund any dividends paid on the Series A Preferred Stock primarily through the yield generated on our ETH holdings from staking, option strategies on Ethereum and additional capital raising activities." That's the real point of difference. STRC's dividends lean on Strategy's broader capital structure and cash; SATA's come from a dedicated 18-month cash reserve behind Strive's Bitcoin. BMNP's come from Ethereum doing work — two streams in particular:

• Staking through MAVAN — as of 25 May 2026 about 4.7 million ETH was staked via MAVAN, some 87% of Bitmine's holdings and roughly 3.9% of all staked ETH. At a gross staking APR of about 2.5–4.0%, that points to roughly $276 million a year in staking revenue.
• ETH option premiums — Bitmine writes options against its ETH, which brought in $24.1 million in the three months to 28 February 2026 on top of the base staking yield.

Set that against the obligation. At 9.50% on 3.5 million shares of $100 stated value, BMNP costs about $33.25 million a year in dividends — and projected staking revenue alone covers that roughly eight times over. That's a comfortable-looking cushion, and it's the number that reassures me most about the instrument. The honest caveats: staking yield moves with the ETH price and network conditions, and the preferred dividend isn't Bitmine's only claim on that cash — common shareholders and operating costs sit in the picture too. But on the figures at launch, the income behind BMNP is well covered.

What happens if a payment is missed

BMNP's dividends are cumulative, and the structure has real teeth if Bitmine ever falls behind. Miss a scheduled payment and the unpaid amount doesn't vanish — it starts compounding at an escalating penalty rate:

• the compounding rate begins at the regular rate plus 5 basis points (compounding weekly);
• it climbs a further 5 bps every week the arrears go unpaid;
• and it's capped at 15% a year.

The effect is to make delay expensive — and more expensive the longer it runs — which is a strong incentive to clear arrears fast and a guarantee that nothing simply gets written off. On top of that, if Bitmine doesn't declare a dividend by the record date it has to spend the next 30 days using commercially reasonable efforts to raise the cash — selling common stock, other securities or digital assets — to cover it. And two consecutive misses trigger a "regular dividend non-payment event," which hands preferred holders the right to appoint extra board members. That governance lever is the part I'd weigh most: it means a persistent payment problem doesn't leave holders as bystanders.

The redemption premium as a price anchor

STRC and SATA keep their price near $100 by moving the rate. BMNP, with a fixed rate, leans on something else: a redemption premium schedule. Bitmine can buy the stock back at any time, but early buy-backs cost it a premium:

• until 10 December 2027 (18 months after issue): 110% — $110 a share, plus unpaid dividends;
• from then until 10 June 2029 (three years post-issue): 105% — $105 a share, plus unpaid dividends;
• after 10 June 2029: 100% — $100 a share, plus unpaid dividends.

That does quiet work on the downside. An investor who bought at the $80 IPO and saw an early buy-back inside the first 18 months would be paid $110 — better than a 35% premium to cost. Even if the market price drifts under $100, the prospect of a 5–10% premium over stated value on an early buy-back gives holders a concrete reason to sit tight. It's a different route to the same place STRC and SATA reach through their rate mechanism: a reason for the price not to wander too far from par.

Reading the filings yourself

Everything here comes from Bitmine's SEC filings on EDGAR. The document to read is the final 424B5 prospectus supplement filed 5 June 2026 — it carries the full Certificate of Designations, the rate language, the compounding-penalty mechanism and the redemption schedule. Bitmine's filing history is at SEC EDGAR — Bitmine Immersion Technologies (CIK 0001829311).

For how the other two set their rates, I covered STRC's rules-based VWAP framework in how STRC's rate is set and SATA's discretionary approach in how SATA's rate is set. The BMNP hub shows the live price and effective yield once it starts trading.

I track STRC and SATA daily and hold positions in their parent issuers (MSTR and ASST). BMNP's Ethereum-staking model is the one I've spent the least time with of the three, so take the above as my early read of the filings, not financial advice — and the prospectus is the place to confirm the detail.

This article is for educational purposes only and does not constitute financial advice. BMNP is a newly issued instrument settling June 10, 2026. Rate and structural details are based on publicly available SEC filings as of June 2026 and are subject to change. Always consult a qualified financial adviser before making investment decisions.