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- Bitmine reported a $6.31 billion annual net loss, mostly from a $6.23 billion unrealized drop in digital-asset values.
- Staking and validation brought in $121.4 million, but it was paid in crypto, while operations used $305.1 million in cash.
- Share sales raised about $12.94 billion net, funding ETH purchases, and Bitmine held $545.1 million in cash at year-end.
Ethereum treasury and staking company Bitmine Immersion Technologies reported a $6.31 billion annual net loss as falling crypto valuations overwhelmed its staking income.
Most of the loss came from a $6.23 billion unrealized decline in digital-asset values. Operating activities separately used $305.1 million in cash, showing the financial pressure beyond changes in the treasury’s market value.
Falling Crypto Values Reverse Last Year’s Profit
The annual report, filed on Nov. 10, covers the fiscal year ending August 31, 2026. Bitmine earned $348.6 million in the preceding fiscal year, when its digital assets generated an $805 million unrealized valuation gain.
At the latest year-end, the company held approximately 5.9 million ETH worth $14.6 billion. Its large Ether treasury leaves reported earnings heavily exposed to price movements, even when the underlying tokens remain unsold.
Bitmine warned that changes in ETH prices would continue to cause:
“[…] significant volatility in our reported results, stockholders’ equity and financial condition.”
The valuation loss is a decrease in the market value of the assets held, rather than an equivalent cash payment.
Staking Revenue Does Not Automatically Pay Dollar Bills
Revenue reached $124.8 million, including $121.4 million from staking and validation, approximately 97% of the total. Bitmine began native staking in November 2025, making it a substantial new revenue source during the fiscal year.
Explaining how rewards entered its accounts, Bitmine noted:
“[…] staking revenue was non-cash as it was received in digital assets.”
That means reported revenue does not automatically arrive as dollars available for payroll, professional fees or other bills. The cash-flow statement deducted $112.7 million of net noncash staking and validation revenue when reconciling earnings with operating cash movements.
Operating activities used $305.1 million, compared with $4.1 million a year earlier. Bitmine attributed the outflows primarily to general and administrative spending, including professional fees, consulting and costs supporting its growth and treasury operations.
Bitmine classifies $200 million in capital-raising, advisory, legal and consulting fees as one-time costs in its adjusted earnings calculations.
There is also a second exposure to ETH’s price. Weaker prices can reduce the dollar value of staking rewards even if the company earns the same number of tokens.
Share Sales Fund Treasury Growth and Cash Reserves
Bitmine’s financing relied heavily on issuing shares. Its at-the-market program sold approximately 395.1 million common shares during the year, raising $13.2 billion before issuance costs and about $12.94 billion after them. Issuing additional shares reduces the ownership percentage of existing shareholders who do not increase their holdings.
Those proceeds helped fund ETH purchases, investments in other businesses and working capital. At Aug. 31, Bitmine held $545.1 million in cash and cash equivalents.
The company also spent $353.8 million repurchasing approximately 20.8 million shares during the fiscal year. Buying back stock used cash alongside the much larger share-issuance program.
Future funding remains tied to both operating performance and capital-market access. Bitmine warned that a sustained ETH downturn could weaken its asset base and staking revenue, make financing harder to obtain and require asset sales to meet operating or liquidity needs.
