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Here is what this means for @fundstrat and $BMNR @BitMNR in simple words:
1. $BMNR sells shares for $100 a piece 3M shares (6X current market value) and raises $300M
2. @fundstrat promises to pay 9.5% dividend annually. So roughly $30M
3. Bitmine‘s annual staking rewards are roughly $300M.
Here is why it’s really smart and different than $BTC $MSTR $STRC
We spend only 10% cash of the annual stacking reward to buy $300M worth of $ETH now probably closer to the lows.
We don’t need to sell $ETH to cover the dividend because staking covers it 10X, we could potentially raise $3B and be staking rewards neutral forever and never be in the pressure to sell $ETH like @saylor did recently with Bitcoin.
As @fundstrat always said: no debt.
I think of a dividend 10% of the profits paid to investors (same like a normal dividend stock) but instead of just paying that to investors you get 10X more back in cash one time to built your business.
Smart move. Well a few more things…
This all will trade under the ticker symbol $BMNP at $100 with a FIXED dividend of $9.50.
Now the $100 isn’t fixed so it can go lower, but let’s say it drops to $50 ($BMNR no problem as they already collected the $300M) the buyer still gets an annual dividend of $9.50 on $50 which would be 19% dividend per year paid weekly to the investor. So the price will regulate itself.
This is a really smart way for $BMNR to raise more funds. I am curious if it will be fast sold out and we could raise even more money this way.
This all looks stupid now, I know, I was investing in $TSLA at $23 and it dropped to $11.
But this will look completely different when $ETH is back at $5,000 and then much higher.
The Great Repricing of $ETH
• 1st - 227x
• 2nd - 54x
• 3rd - ? If it follows the pattern ~ 13x
We bottom at $1,400-1,600
Then surge to $18,000-$21,000 by 2032