So, Bitmine is mixing it up. They’ve added ETH to their balance sheet, and they’re one of the biggest ETH holders now. But unlike Saylor, they seem to buy at the peak... not exactly a smart move. Just saying, Saylor’s got room to maneuver since he bought Bitcoin earlier.
STRC’s preferred stock is already struggling. With BTC down, not sure if Bitmine’s latest preferred stock will be a hit... feels like a bad idea to me.
Saylor had to dump some Bitcoin at a loss to keep up with those dividend payouts. Bitmine’s gotta address how they’ll profit to cover these dividends. It kinda looks like a Ponzi, tbh.
Strive set the trend with dividend-paying stocks, and now Bitmine is hopping on that bandwagon... probably because diluting their common stock isn't working anymore. 9.5% is just the start; they might have to keep upping it to keep investors around.
Looks like Bitmine isn’t backing down, trying to replicate Saylor’s strategy. Offering preferred stock shows they’re low on cash for buying more ETH, which might lead to them selling their ETH too. But they do have staking income... maybe that can help cover dividends.
I was thinking they might hit a breaking point soon with prices. Rumor is Bitcoin needs to drop to $7k for them to truly assess their situation. They bought ETH at a higher price, so if it doesn’t bounce back, they could be in big trouble.
This definitely feels like a bailout scheme to me. It’s like they’re enticing investors with unsustainable returns. What’s backing that 9.5% if not just other investors’ cash?
Saylor’s got it rough right now, but compared to Bitmine, he’s in a way better spot. Bitmine’s ETH holdings are basically underwater and their cash is running low.
For Bitmine, staking ETH could bring in around $250 million per year. Not sure if that’s accurate now with ETH tanking, but feels like a risk. The common stock holders might end up with nothing while these dividends flow.
This is just another Ponzi setup, like STRC. Bitmine’s cash reserves are tight, and they’re trying to lure retail investors with high yields. But with their staking only giving about 3%, how can they justify that 9.5% APY?