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GM. This is Milk Road, the daily newsletter that's the pit crew keeping your portfolio race-ready. |
Here’s what we’ve got for you today: |
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Nexo is back in the U.S. - and new clients get 30 days of Wealth Club Premier perks! Higher yields, lower borrowing rates, and crypto cashback - start here. |
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TOM LEE COPIED SAYLOR'S PLAYBOOK - AND ETH MIGHT MAKE IT WORK BETTER. 📖 |
Tom Lee's Bitmine (the world's biggest Ethereum treasury company) just priced a new stock offering. |
And it's lifted straight from Michael Saylor's homework. 👇 |
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The product is a preferred stock, which is a weird middle child between a regular stock and a bond. |
You collect a fixed cash payment on a set schedule (like a bond's interest) and you sit ahead of normal shareholders if the company hits trouble. |
The trade-off is you give up the upside that comes with owning the common stock. |
Here are the terms Bitmine landed on: |
9.5% annual dividend, paid out weekly in cash. $100 face value, but the shares are selling for $80. At that $80 price, buyers are pocketing closer to 11.9% a year. It's "perpetual," so no end date - it runs until Bitmine buys it back. About $280M raised, trading under the ticker BMNP.
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The plan for the cash is simple: buy more ETH, and feed the staking setup that earns yield on the pile Bitmine already holds. |
If this rings a bell, it's because Saylor’s Strategy (MSTR) did it first. |
They run a near-identical product called Stretch (STRC) - a preferred stock anchored at $100, paying a juicy dividend, with all the proceeds funneled into Bitcoin. 👇 |
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Strategy's been running it since mid-2025, cranking STRC's dividend up to 11.5% along the way. |
Bitmine’s BMNP is essentially the same thing, but with ETH instead of BTC. |
And that swap changes things… |
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TOM LEE COPIED SAYLOR'S PLAYBOOK - AND ETH MIGHT MAKE IT WORK BETTER. (P2) 📖 |
Our lead macro researcher John Gillen got into exactly this in yesterday's debate with Bankless's David Hoffman (worth a watch btw). |
The two rarely agreed on anything ETH-related during the podcast, but on this one they landed in the same spot: |
Bitcoin just sits there. |
It doesn't earn a dime, so to cover those fat dividends, Strategy has to sell more stock, or, in an ugly market, sell some of its actual Bitcoin (which it did last week). |
ETH is different, because you can stake it for around 3% a year. That means Bitmine's ~$8.6B stack isn't dead weight - it throws off income that can go straight toward the dividend. |
That hands Bitmine options Saylor doesn't have. |
It can lean on staking income to help ride out a downturn, or pay holders even more, instead of dumping its stack at the worst possible moment. |
And before you say it - yes, I agree: the timing feels super weird. |
The market is brutal right now! Bitmine is already sitting on roughly $10B in paper losses, having bought 5.4M ETH near $2,000 while ETH now trades under $1,600. |
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(All while Strategy's own product is getting stress-tested live.) |
On the flip side: |
Launching when money is tight and scary is the disciplined way to do it. It's the cheap-money days that get treasury companies over their skis, the same way easy capital blew up Terra/Luna. |
That said - the low n’ slow approach will likely cap the upside (at least in the near-term). |
$280M is pocket change next to Bitmine's multi-billion-dollar ETH pile - so this raise won't move the price by itself. It's a proof of concept more than it is a needle-mover. |
What matters is whether the model holds: |
If ETH's staking yield can reliably fund the payments - Bitmine has a self-funding flywheel that Saylor can't build with Bitcoin. |
Adding heavily to the case that ETH is the better treasury asset. |
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Could the SpaceX IPO hurt crypto? Bloomberg's Seyffart thinks it's a real concern. |
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Jim Bianco: The market has been wrong about the Strait of Hormuz for 90 days straight. |
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