TLDR
- Bitmine reported a $3.8 billion net loss in its latest quarterly filing.
- The company doubled its outstanding shares to nearly 494 million in six months.
- Bitmine raised over $10 billion in equity and used the funds to buy Ethereum.
- The firm holds 4.87 million ETH at an average cost of $2,206 per token.
- Ether traded near $2,325, about 5% above Bitmine’s average purchase price.
Bitmine reported a $3.8 billion quarterly net loss in its latest 10-Q filing. The company expanded its Ethereum holdings while doubling its common shares in six months. It now holds nearly 5% of all ether in circulation.
Bitmine Expands ETH Treasury as Share Count Doubles
Bitmine increased its common stock from 232 million to nearly 494 million shares between August 31 and February 28. The company raised over $10 billion in equity during that period. It directed most proceeds toward Ethereum purchases and treasury expansion.
Additional paid-in capital rose from $8.36 billion to $18.55 billion over six months. The company used those funds to acquire 4.87 million ether. Bitmine paid an average of $2,206 per token for its holdings.
Ether traded near $2,325 on Wednesday, about 5% above Bitmine’s average cost. However, the company recorded $3.78 billion in unrealized losses for the quarter. It applied fair-value accounting rules adopted in 2024.
Those rules require firms to mark crypto holdings to market each reporting period. Therefore, Bitmine reflected price swings in its income statement. Ether declined sharply during the quarter, which created paper losses.
The company stated that it did not sell its Ethereum holdings during the period. Instead, it maintained its treasury strategy and increased purchases. Chairman Tom Lee said the company viewed the pullback as “attractive, given the strengthening fundamentals.”
Operations Shift to Staking as Costs Rise
Bitmine’s self-mining revenue fell 86% year over year to $219,000 for the quarter. In contrast, staking generated $10.2 million of the company’s $11 million total revenue. The company has replaced mining operations with staking activity.
General and administrative expenses reached $75 million for the quarter. A year earlier, those costs stood at $964,000. For the six months, G&A totaled $298.6 million against $13.3 million in revenue.
The filing also disclosed derivatives exposure during the quarter. Bitmine booked $65.3 million in unrealized losses on derivatives positions. It also reported $24.1 million in option premium income.
Those figures indicate that the company executed options strategies on its Ethereum holdings. The structure may include covered calls to generate yield. The company has not disclosed full details of the derivatives contracts.
As of February 28, Bitmine held $879.6 million in cash. It also owned 198 Bitcoin and a $200 million stake in Beast Industries. The company reported an $85 million position in Eightco Holdings as of the same date.
