Bitmine Immersion Technologies has become the Ethereum version of Strategy, doubling its shares outstanding in six months and raising more than $10 billion in capital to accumulate nearly 5% of all ether (ETH) in existence.
It reported a quarterly net loss of $3.8 billion in Tuesday’s 10-Q filing, with share counts (common shares) going from 232 million to nearly 494 million between Aug. 31 and Feb. 28.
Additional paid-in capital jumped from $8.36 billion to $18.55 billion over the same period, and those funds went directly into ETH.
As of April 12, Bitmine held 4.87 million ether at an average cost of $2,206 per token, making it the largest corporate Ethereum treasury globally and the second-largest corporate crypto treasury behind Strategy.
Ether traded near $2,325 on Wednesday, about 5% above Bitmine’s $2,206 average entry. The $3.78 billion in unrealized losses on the quarter’s income statement reflect fair value accounting, which marks holdings at market prices in each period. ETH fell sharply during the quarter from high levels, generating a paper loss even though the position continues to generate profits in cost terms.
Under fair value accounting rules adopted in 2024, those market value swings flow through profit and loss regardless of whether the company has sold anything.
But the transformation from a mining company to a leveraged ETH treasury is creating its own set of pressures.
Self-mining revenue collapsed 86% year over year to $219,000 during the quarter. Sating has replaced it entirely, generating $10.2 million of the company’s $11 million in total quarterly revenue.
General and administrative (G&A) expenses reached $75 million during the quarter, up from $964,000 a year earlier. For the full six-month period, general and administrative expenses reached $298.6 million against just $13.3 million in revenue. Some of that likely reflects stock-based compensation tied to capital raises, but the gap between operating costs and operating income is stark for a company whose core product now is holding and staking a single token.
The filing also reveals exposure to derivatives that was not previously detailed.
Bitmine recorded $65.3 million in unrealized losses on derivatives and $24.1 million in options premium income during the quarter, suggesting that the company is executing options strategies on its ETH holdings, possibly covered calls to generate additional yield.
President Tom Lee said in March that the company views ether’s pullback as “attractive given strengthening fundamentals,” and noted on Monday that Bitmine has accelerated its buying pace over the past four weeks.
Bitmine had $879.6 million in cash as of Feb. 28, along with 198 bitcoins, a $200 million stake in Beast Industries, and an $85 million position in Eightco Holdings.
