Bitmine Reports $6.3 Billion Annual Loss as Ether Falls

Ether revaluation drives Bitmine’s loss

Bitmine held 5,901,837 ETH at the end of August. Those tokens cost the company $19.95 billion and were worth $14.56 billion at year-end. The gap measures the difference between the purchase cost and market value of the Ether it still held on August 31. The $6.23 billion expense measures the year’s unrealized loss across its digital assets.

A year earlier, Bitmine booked an $805 million unrealized gain on digital assets as it began building its Ether position. The same accounting can produce large swings at other treasury companies. Bitcoin holder Strategy disclosed an $8.31 billion unrealized digital asset loss for the three months through June 30.

Cash spent on building the treasury appears separately in Bitmine’s cash flow statement. Purchases of Ether and other digital assets accounted for $12.55 billion in investing outflows during the fiscal year. Bitmine raised $12.94 billion in net proceeds from selling common stock through its at-the-market program, which lets it issue shares into the public market over time.

Common shares outstanding rose to 613.3 million at the end of August from 232.4 million a year earlier. The stock sales helped fund the buildup in Ether holdings. With more shares outstanding, each represented a smaller percentage of the company.

Bitmine had also raised money through preferred stock in June. Its annual report put net proceeds from that offering at $271.5 million. The preferred shares carry a 9.5% annual dividend rate.

Ethereum staking brings in $121 million

Bitmine reported $121.4 million of staking and validation revenue, about 97% of its $124.8 million in total sales. It began staking its own Ether in November 2025 and added validator infrastructure through its March acquisition of Pier Two.

Staking earns rewards for helping validate transactions on Ethereum. Bitmine receives substantially all of its staking revenue in Ether, so a lower token price reduces the dollar value of the rewards even if it earns the same number of tokens. That exposure comes on top of the change in the value of the Ether it already holds.

In its November 9 treasury update, Bitmine said it had staked about 86% of its Ether as of November 8. Chairman Tom Lee estimated annualized staking rewards of $309 million based on that position and the recent yield. The estimate reflects a later, larger staking position and varies with Ether’s price and network rewards.

Bitmine nears its 5% Ethereum cap

Bitmine reported 6,070,092 ETH as of November 8, or about 4.97% of the 122.2 million tokens it estimated were in circulation. That was roughly 168,000 ETH more than it held at the fiscal year-end. The same update listed $475 million in cash and marketable securities.

Lee said in October that Bitmine would stop buying Ether once it reached 5% of supply. The November update still put the company below that level and gave no date for ending purchases. The percentage also depends on how many tokens are in circulation when Bitmine reports its holdings.

Bitmine warned in the annual filing that a sustained decline in Ether could make it harder to raise money on acceptable terms. In that case, the company said it might need to sell some assets, reduce spending or limit dividends.

The Crypto Fear & Greed Index registered 28 on November 12, in the Fear range, down from 29 the day before.

Bitmine expects to file a quarterly report for the three months ending November 30 and a four-month transition report through December 31 as it changes its fiscal year-end. The reports will show how changes in Ether’s price and the larger staking position flowed through earnings and operating cash.