BMNR Stock Outlook: Bulls Defend $16 Support as Bitmine’s STRC-Like Preferred Stock Debuts on NYSE

Bitmine (NYSE: BMNR) stock price is defending a crucial support level at $16, barely a day after the company debuted its BMNP preferred stock at the NYSE.

BMNP is a Series A Perpetual Preferred Stock that started trading at the NYSE on June 16. It has similar traits to Strategy’s STRC stock because Bitmine will use it to fund its Ethereum purchases in the same way that Strategy uses the capital raised from STRC to buy Bitcoin.

Bitmine’s BMNP Preferred Stock Starts Trading at the NYSE

Bitmine’s BMNP preferred stock officially started trading at the NYSE on June 16. It comes with a dividend rate of 9.50% paid out on a weekly basis.

BNMP started trading six days after Bitmine floated 3,500,000 preferred shares on June 10 at a price of $80 per share. It raised $273 million from this sale, with the NYSE showing that the share price has since climbed to $88.

The debut of BMNP at the NYSE created a lot of volatility around the preferred stock, with the price oscillating between a high of $92 and a low of $88.

At press time, BMNP had stabilized at around $89, but remained 11% below the par of $100.

BMNR stock price also saw similar volatility as the shares rose to $17.26 before closing at $16.21.

ETH Staking Activity to Fund BMNP Dividend Payout

Bitmine’s chairman, Tom Lee, notes that the rewards that come from staking Ethereum will go towards the 9.5% weekly dividend payout.

“The Company’s current projected annualized staking rewards of approximately $219 million provide recurring cash flow to support the dividends related to the Series A Preferred shares,” Lee said.

Bitmine has staked 5.62 million ETH tokens for a yield of 2.99%. The company holds 4.66% of the entire Ethereum supply after Bitmine announced another purchase of $136 million ETH on June 15.

BMNR Stock Price Defends Crucial Support

The BMNR stock price has been defending the support level of $16 for five trading days since June 11. The recent rebound in crypto stocks because of easing geopolitical tensions has aided the effort of the bulls to keep the price above this support.

If BMNR can bounce again from this support as it did on June 11, it may resume the upside journey and target the resistance at $18.

The RSI line has been making higher lows since June 5 to suggest that sellers might be losing control.

The AO bars that are green and shrinking on the negative side also show that the bearish momentum is becoming weaker.

BMNR’s strong rebound will occur if the RSI reading moves above 50 and these AO bars turn positive.

BMNR Stock Meets Eligibility Criteria for Russell 1000

Tom Lee recently revealed that Bitmine could join the Russell 1000 index. The updated list of the stocks that are going to join or leave this index comes out on June 18.

If BMNR is among the stocks on the index, buying pressure will rise, and the price could move higher.

Tom Lee had earlier highlighted the potential that could be unlocked if Bitmine joins the Russell 1000. He says it could attract buying from fund managers that only buy shares from this index.