BMNR extreme value extrapolation 6.09

Over the past week, both BTC and ETH experienced significant declines, but for BMNR, it was still a milestone week. The company finally expanded its financing toolkit beyond ATM - the preferred stock BMNP. BMNP is authorized for a total of 20 million shares, with the first batch initially planned to issue 3 million shares at a price of 100, with an interest rate of 9.5% and weekly interest payments. The actual issuance was 3.5 million shares at a discounted price of 80, with the interest rate and payment method unchanged. Considering the downturn in the crypto market, a certain degree of discount was expected, but exceeding the issuance quota also reflects market demand. Essentially, BMNP, like STRC, targets the fixed-income market, effectively stripping away the volatility of crypto assets and offering buyers an attractive fixed interest rate return. The difference is that STRC's interest rate is floating and adjustable, while BMNP's is fixed. For this product, BMNR has been preparing for a long time, from changing auditors to the Big Four KPMG, to moving to NYSE main board trading, all to obtain higher credit.

This financing through preferred stock BMNP raised 270 million, with settlement expected to be completed on 6.10. With this funding, management no longer needs to worry about the reduction in cash positions, buying 126,000 ETH during the sharp decline, the highest purchase volume in 26 years. Meanwhile, although ETH kept falling, BMNR's mNAV returned to 1.03, maintaining the possibility of ETH being a firm buy. Over the past few months, BMNR's fundamentals have been continuously improving: MAVAN launch, steady increase in coin hoarding and staking, listing on the NYSE main board, expansion of the preferred stock financing toolkit, and inclusion in the Russel index. The stock price decline is more due to the downturn in the underlying asset ETH and the broader crypto market. I think one cannot claim to understand it without experiencing a full cycle. Therefore, the strategy remains dollar-cost averaging, surviving in the trough, and waiting for the next cycle.

Not investment advice.

$BitMine Immersion Tech(BMNR.US)