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

BMNP is the 9.50% Series A Perpetual Preferred Stock issued by Bitmine Immersion Technologies, Inc., listed on the NYSE in June 2026. Its dividend structure departs meaningfully from both STRC and SATA: the rate is fixed at issuance rather than monthly-adjustable, payments are made weekly rather than monthly or daily, and the income is funded primarily by Ethereum staking rewards rather than a Bitcoin treasury. Understanding how the rate is set, how it can change, and what mechanisms protect investors if payments are delayed is essential for evaluating the instrument.

About Bitmine Immersion Technologies

Bitmine Immersion Technologies, Inc. (NYSE: BMNR) began as a Bitcoin mining company, using immersion-cooling technology to operate high-density mining rigs. Over 2024 and 2025 it executed a strategic pivot — selling down its mining operations and redirecting capital into Ethereum, following a playbook similar to Strategy's accumulation of Bitcoin. By early 2026 it had become the largest corporate holder of Ethereum in the world.

As of February 28, 2026, Bitmine held over 4,473,459 ETH — approximately 3.71% of the circulating ETH supply — with a fair value of approximately $8.8 billion. Alongside its ETH holdings, the company held 195 BTC, a $180 million stake in Beast Industries, and $880 million in cash, bringing total assets to approximately $9.9 billion. Its long-term ambition is to hold approximately 5% of the total ETH supply.

In March 2026, Bitmine launched MAVAN — its Made in America VAlidator Network — a proprietary institutional-grade Ethereum staking platform. By May 2026, MAVAN had over $14 billion in ETH staked globally, with Bitmine's own holdings representing approximately 3.9% of the total ETH supply staked through the network. In the same month, Bitmine acquired Pier Two Holdings, an institutional blockchain infrastructure provider, to deepen its validator capabilities.

Operationally, Bitmine is a growing business: quarterly revenue reached $11 million for the three months ending February 28, 2026 — up from $1.5 million a year earlier — driven primarily by staking income and ETH options strategies. The BMNP preferred stock offering, which raised approximately $274.8 million net of underwriting costs, is expected to fund further ETH acquisitions and MAVAN infrastructure development.

A fixed rate, not a monthly adjustment

BMNP's most important structural difference from STRC and SATA is that its 9.50% annual rate is fixed at issuance. There is no formal monthly mechanism — no VWAP price bands, no algorithmic trigger — that automatically adjusts the rate in response to how BMNP trades relative to its $100 stated value.

STRC operates under a four-band VWAP framework: if the five-day volume-weighted average price falls below certain thresholds, mandatory minimum rate increases are triggered. SATA follows a wholly discretionary board approach, with management stating an intention to keep the price in a $99–$101 range but no binding formula. BMNP is closer to SATA in this respect — the board retains the discretion to adjust the rate in the future — but unlike SATA, no adjustment mechanism or target range was published at launch. The 9.50% rate is the starting point, not a dynamic peg.

How the 9.50% rate was set

Bitmine launched BMNP at an issue price of $80.00 per share — 20% below the $100 stated amount. This is the same structure Strive used for SATA's November 2025 IPO (also at $80, also 20% below par). At the $80 issue price, investors purchasing at IPO receive an effective yield of approximately 11.875% on their cost basis (9.50 ÷ 80 × 100), even though the stated rate is 9.50% of the $100 stated amount.

The 9.50% stated rate — combined with the $80 issue price — was set to attract investors who are also comparing STRC (11.50% at par, ~$0.958/month) and SATA (13% at par, ~$1.083/month). The deeper IPO discount compensates for a lower stated rate. At $80, BMNP's effective IPO yield of ~11.875% sits between STRC and SATA's current effective yields, positioning it as a competitive entrant in the space while offering the differentiated Ethereum backing thesis.

Weekly payments: a faster income cadence than monthly

BMNP pays dividends weekly in arrears — every week, based on a record date 10 days before the payment date. At 9.50% annually on a $100 stated amount, each weekly payment is approximately $0.183 per share (9.50 ÷ 52). Bitmine retains the discretion to increase payment frequency beyond weekly should it choose to do so.

Among the three instruments covered on this site, SATA holds the highest payment frequency — daily, every NYSE business day from June 16, 2026 (approximately 250 payments per year). BMNP is second, paying every week of the calendar year (52 payments), ahead of STRC's current monthly schedule (12 payments per year). For investors who reinvest, BMNP's weekly compounding still provides significantly more cycles per year than a monthly structure. For income investors, it means a steady, regular payment rhythm.

Unlike SATA's daily payments, which track NYSE business days (approximately 250 per year), BMNP's weekly payments occur regardless of whether a specific day is a NYSE trading day — the 52-week calendar governs the payment schedule.

What funds the dividend: ETH staking via MAVAN

Bitmine states explicitly in its 424B5 prospectus that 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." This sets BMNP apart from the other two instruments covered here: STRC's dividends are funded from Strategy's broader capital structure and cash reserves, while SATA's are drawn from a dedicated 18-month cash reserve backed by Strive's Bitcoin holdings. BMNP's income source is Ethereum — specifically the yield generated by staking it.

BMNP's income flows from two primary sources:

• ETH staking rewards through MAVAN — Bitmine's Made in America VAlidator Network, launched in March 2026, operates validator infrastructure on the Ethereum network. As of May 25, 2026, approximately 4.7 million ETH had been staked through MAVAN — representing 87% of Bitmine's total ETH holdings and approximately 3.9% of the entire ETH supply. The gross staking annual percentage rate is approximately 2.5%–4.0%, generating a projected annualized staking revenue of approximately $276 million.
• ETH option premium income — Bitmine runs option strategies on its ETH holdings, generating additional income. This produced $24.1 million in option premium income in the three months ended February 28, 2026 — a meaningful supplementary income stream alongside the base staking yield.

At 9.50% on 3.5 million shares with a $100 stated amount, BMNP requires approximately $33.25 million per year in dividend payments. With projected staking revenue alone at ~$276 million annually, the income coverage ratio is substantial — staking revenue alone is approximately eight times the current BMNP dividend obligation. However, Bitmine's total capital structure obligations (including its common stockholders' interests and operating costs) are larger than the preferred dividend alone, and staking yields fluctuate with ETH price and network conditions.

Bitmine's ETH holdings: the asset base

As of February 28, 2026, Bitmine held over 4,473,459 ETH — making it the largest corporate holder of Ethereum in the world, with a fair value of approximately $8.8 billion. The company's long-term aspiration is to hold approximately 5% of the total ETH supply. At the time of that snapshot, it held 3.71% of the then-circulating supply of approximately 120.7 million ETH.

Alongside its ETH holdings, Bitmine held 195 BTC, a $180 million stake in Beast Industries, and $880 million in cash — total asset holdings of approximately $9.9 billion as of February 2026. The proceeds from the BMNP offering ($274.8 million net of underwriting costs) are expected to be used to acquire additional ETH and fund MAVAN infrastructure development.

The compounding penalty: protection if payments are missed

BMNP's dividends are cumulative — if any regular dividend is not paid on its scheduled payment date, the unpaid amount does not simply disappear. Instead, compounded dividends begin to accumulate on the unpaid balance, and those compounded dividends carry an escalating penalty rate:

• The compounding rate starts at the regular dividend rate plus 5 basis points (based on a weekly compounding period)
• It then increases by 5 basis points per week until the unpaid dividend, plus compounded dividends, is paid in full
• The compounding rate is capped at 15% per annum

In practice, this means Bitmine faces an escalating cost for any payment delay, creating a strong financial incentive to resolve deferred dividends promptly. The cumulative structure also means no payment is simply written off — investors are entitled to receive all accumulated dividends before BMNP stockholders can be passed over in favour of common equity. If Bitmine fails to declare a dividend by the record date, it must immediately begin using commercially reasonable efforts over the following 30 days to raise proceeds — by selling common stock, other securities, or digital assets — to cover the deferred amount.

Two consecutive failures to pay accumulated dividends constitutes a "regular dividend non-payment event," which triggers the right for preferred stockholders to appoint additional board members. This governance provision gives BMNP holders a meaningful lever if the company faces sustained payment difficulties.

The redemption premium: an implied price anchor

Unlike STRC and SATA — which use monthly rate adjustments to keep the price near $100 — BMNP uses a redemption premium schedule to create a similar price anchoring effect. Bitmine can redeem BMNP at any time, at a premium:

• Until December 10, 2027 (18 months after issue): redemption at 110% of the $100 stated amount ($110 per share), plus unpaid dividends
• From December 2027 to June 10, 2029 (three years post-issue): redemption at 105% ($105 per share), plus unpaid dividends
• After June 10, 2029: redemption at 100% ($100 per share), plus unpaid dividends

These redemption premiums mean that if Bitmine were to call the preferred stock within the first 18 months, holders would receive $110 per share — a significant premium for investors who purchased at the $80 IPO price. This structure provides a meaningful floor on downside: even if the market price drifts below $100, the redemption premium creates a strong reason for investors to hold, knowing they could receive 10–10% above stated value on an early call.

Reading the BMNP filings yourself

All details in this article are drawn from Bitmine's SEC filings, publicly available on the SEC's EDGAR system. The primary reference document is the final 424B5 prospectus supplement filed June 5, 2026 — which contains the complete Certificate of Designations, the rate-setting language, the compounding penalty mechanism, and the redemption premium schedule. Bitmine's filing history can be browsed at SEC EDGAR — Bitmine Immersion Technologies (CIK 0001829311).

For comparison with STRC's rules-based VWAP framework, see How STRC's Dividend Rate Is Set. For SATA's discretionary mechanism, see How SATA's Dividend Rate Is Set. The BMNP hub shows the live price and effective yield as the instrument begins trading.

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.