Shares of Bitmine Immersion Technologies (NYSE:BMNR | BMNR Price Prediction) are down 5% to $16.91 in early Friday trading, while Strategy (NASDAQ:MSTR) is off 4% to $124.38. The slide tracks a fresh leg lower in crypto.
Ethereum (CRYPTO:ETH) is down 7% over the past 24 hours to $1,665, dragging BMNR stock with it as the largest corporate ETH holder. Bitcoin (CRYPTO:BTC) is down 3% to $61,965, pulling MSTR stock lower in sympathy.
The moves extend a brutal stretch for both names. BMNR stock is down 34% year to date (YTD), while MSTR stock has shed 15% YTD heading into Friday’s session.
Ethereum’s Plunge Hits the ETH Treasury Trade
BitMine is a pure-play Ethereum treasury vehicle, so Bitmine stock effectively trades as a leveraged ETH proxy. With ETH down 44% YTD versus Bitcoin’s 29% drop, the relative pain in BMNR stock makes sense.
BitMine Chairman Thomas Lee has framed the drawdown as a continuation of the October 10, 2025 liquidation event, which he called “the largest ever single day liquidation event in the history of crypto.” Lee added, “History shows crypto prices stage V-shaped recoveries after a lingering and drawn out decline, and we expect this to again be the case in this current drawdown.”
BitMine’s latest filing flagged over $4 billion in unrealized losses on its ETH position. Strategy logged a $17.4 billion unrealized loss on digital assets in Q4 2025 under fair-value accounting.
BitMine’s Series A Preferred Mirrors Strategy, Adds Staking
BitMine just filed with the SEC to launch a Series A Perpetual Preferred Stock offering of 3 million shares at $100 per share, carrying a 9.5% cumulative annual dividend. Proceeds are earmarked for Ethereum acquisition, ETH staking infrastructure expansion, and ecosystem investment.
The structure echoes Strategy’s preferred playbook but with a twist: staking yield, which Bitcoin cannot replicate. Earlier this year, Strategy sold 32 BTC, its first Bitcoin sale since 2022, to fund STRC preferred dividends at 11.5%, a move that briefly pushed Bitcoin below $62,000.
The bull case, voiced by Standard Chartered’s Geoffrey Kendrick, is that ETH treasury firms may outperform Bitcoin equivalents because staking yields can fund dividends without forced asset sales. The bear case is sharper: 3% to 5% staking APY doesn’t cover a 9.5% preferred coupon without continued ETH accumulation, staking yields aren’t fixed, and BitMine’s goal of 5% of all ETH creates real concentration risk.
Prediction Markets Signal More Strategy Buying
Polymarket traders are pricing a 73% probability that Strategy announces a Bitcoin purchase during the June 2 to 8 window, suggesting the market expects CEO Phong Le to use the downturn as a buying opportunity. Strategy held 713,502 BTC as of early February.
Still, the same markets are skeptical longer term. The probability of Strategy hitting 1 million BTC by year-end sits at just 37%, and there’s a 64% implied probability of MSCI index delisting by December 31. Margin call risk, however, is priced at only 7%.
What to Watch
Investors can track whether ETH can stabilize above $1,653 and whether Bitcoin holds the $62,000 zone into the U.S. close. Any Strategy purchase announcement this weekend could swing MSTR stock quickly Monday.
For BMNR stock, the next anticipated catalyst is the MAVAN (Made-in-America Validator Network) staking launch and pricing details on the new Series A preferred shares. Both could shape whether the dividend math holds up if ETH stays soft.
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