Ethereum Slides as BitMine Plans $300M Raise, ETH ETFs Snap 17-Day Outflow Streak

Ethereum News

Thomas Lee's BitMine Immersion Technologies is testing public-market appetite for further Ethereum exposure with a fresh $300 million capital raise structured around perpetual preferred stock. The firm filed plans on June 3 to sell three million shares of 9.50% Series A perpetual preferred at a $100 stated amount, with the securities expected to list on the New York Stock Exchange under the ticker BMNP pending approval. Moelis & Company and Cantor are leading the bookrunning effort. If the issuance clears in full, BitMine would shoulder roughly $28.5 million in annual dividend obligations, paid weekly when declared, deepening the link between its balance sheet and ETH price action.

Spot ether exchange-traded funds in the United States finally interrupted a punishing run of redemptions, posting $19.30 million in net inflows on Wednesday to close out a 17-session outflow streak. Notably, the entire daily print came from BlackRock's ETHA, while every other ether vehicle in the category logged zero net flow — a sign that institutional conviction remains highly concentrated in a single issuer. Total ether ETF assets now sit at $9.78 billion, representing roughly 4.57% of ETH's circulating market capitalization. Cumulative inflows since the 2024 launch have reached $11.21 billion, though the category still trails its earlier asset peak by about $2 billion.

Behind the preferred-stock pitch sits a more uncomfortable number: BitMine's unrealized losses on its Ethereum stack have ballooned past $8.5 billion as ETH trades well beneath the company's average purchase price. The firm currently holds more than 5.3 million tokens, equal to about 4.5% of ETH's circulating supply, making it the largest publicly listed ether treasury entity in the market. A substantial portion of that position is staked, meaning the treasury continues to harvest validator rewards even as mark-to-market accounting registers heavy paper losses. The strategy effectively converts spot volatility into a yield-bearing balance-sheet experiment under intense scrutiny.

Wednesday's print also broke a parallel 13-session redemption streak in U.S. spot bitcoin funds, where a thin $3.05 million inflow capped a stretch that drained roughly $4.4 billion. BlackRock's IBIT absorbed $47.66 million while Fidelity's FBTC, Bitwise's BITB and Ark's ARKB continued to bleed. The relief, however, sits against a deteriorating backdrop: bitcoin traded as low as $62,715 in Asian hours, ether sank to $1,696, and global risk sentiment soured as Broadcom's outlook miss and a 4.7% KOSPI sell-off rolled through the AI trade. Against $4.4 billion of redemptions, a $3 million day reads as statistical noise rather than a structural reversal.

BitMine chairman Thomas Lee has repeatedly framed staking yield as the structural advantage that distinguishes ETH treasuries from bitcoin-focused vehicles. Unlike bitcoin, which generates no native return, staked ether produces protocol rewards that allow a treasury firm to compound holdings without having to liquidate underlying tokens. That distinction is central to the economics of the new 9.5% preferred offering — proceeds may fund additional ETH purchases, expansion of validator infrastructure, Ethereum-related strategic investments, working capital and common-stock buybacks. The structure essentially borrows from public-market investors at 9.5% and tries to monetize the spread through staking rewards, accumulation, and any eventual recovery in ETH spot pricing.

The only ETF category that escaped the broader redemption wave was Hyperliquid's HYPE complex, which extended its streak with another $12.15 million in net inflows on Wednesday. Bitwise's BHYP pulled $7.45 million, while Grayscale's newly launched low-fee HYPG fund attracted $4.70 million on its first day of trading. Combined HYPE ETF net assets now sit at $185.68 million across roughly four weeks since the May 12 debut, with every single trading session logging positive flow. The contrast underscores how institutional capital has rotated toward a narrower set of altcoin narratives even as the dominant ETH and BTC complexes have endured weeks of selling pressure.

On the chart, ETH trades near $1,678.88 after a 4.07% daily decline, sitting just above immediate support at $1,625.78 with deeper floors at $1,545.89 and $1,397.54. A candlestick RSI reading of 15.45 flags deeply oversold conditions and historically precedes mean-reversion bounces, yet the bearish MACD signal and clear downtrend bias argue against treating that read as a standalone buy trigger. Reclaiming $1,721.44 would neutralize near-term downside pressure, with $1,823.71 the first meaningful trend-flip level. A decisive break of $1,625 invalidates the oversold bounce thesis and opens $1,545 quickly.