Bitmine Posts $3.8 Billion First-Quarter Loss Following Major Expansion of Ethereum Holdings

TLDR

• Bitmine posted a $3.8 billion net loss in its most recent quarterly report.
• The firm’s outstanding share count doubled to almost 494 million over a six-month span.
• Over $10 billion was raised in equity, with the capital deployed to purchase Ethereum.
• Its treasury contains 4.87 million ETH, acquired at an average price of $2,206 per coin.
• Ether was trading around $2,325, approximately 5% higher than Bitmine’s average buy price.

(SeaPRwire) –   Bitmine disclosed a $3.8 billion quarterly net loss in its most recent 10-Q filing. The company grew its Ethereum reserves as its common shares doubled in six months. It now controls close to 5% of the total ether supply.

Bitmine Expands ETH Treasury as Share Count Doubles

Between August 31 and February 28, Bitmine boosted its common stock from 232 million to roughly 494 million shares. The equity raise during this time exceeded $10 billion. The majority of these proceeds were allocated to buying Ethereum and growing the treasury.

Additional paid-in capital climbed from $8.36 billion to $18.55 billion across the six months. These funds were used to purchase 4.87 million ether. The average price paid by Bitmine was $2,206 per token.

On Wednesday, Ether was trading near $2,325, roughly 5% above Bitmine’s average cost basis. Despite this, the company registered $3.78 billion in unrealized losses for the quarter, applying new fair-value accounting standards adopted in 2024.

These standards mandate that companies report cryptocurrency holdings at market value every reporting period. Consequently, Bitmine included price volatility in its income statement. A significant decline in Ether’s price during the quarter resulted in these paper losses.

The company confirmed it did not sell any Ethereum during the period. It continued its treasury strategy and made additional purchases. Chairman Tom Lee remarked that the company considered the price dip “attractive, given the strengthening fundamentals.”

Operations Shift to Staking as Costs Rise

Bitmine’s self-mining revenue plummeted 86% year-over-year to $219,000 for the quarter. By comparison, staking operations produced $10.2 million of the firm’s $11 million total revenue. The company has largely transitioned from mining to staking.

General and administrative expenses hit $75 million for the quarter, a sharp increase from $964,000 a year earlier. Over the six-month period, G&A expenses totaled $298.6 million, compared to $13.3 million in revenue.

The filing also revealed derivatives activity for the quarter. Bitmine recognized $65.3 million in unrealized losses on derivatives positions. It also recorded $24.1 million in option premium income.

These numbers suggest the company employed options strategies on its Ethereum portfolio. The approach likely involved covered calls to produce additional yield. Full details of the derivatives contracts have not been made public.

As of February 28, Bitmine’s holdings included $879.6 million in cash. It also possessed 198 Bitcoin and a $200 million investment in Beast Industries. The company reported an $85 million holding in Eightco Holdings on the same date.