Bitmine Immersion Technologies, which says it is the largest corporate holder of ether, lost $6.31 billion in the fiscal year that ended Aug. 31, according to its annual report filed with the SEC on Tuesday. Almost all of the loss came from marking its ETH to market after a 44% fall in the token’s price. A year earlier, the company reported net income of $348.6 million.
Where the $6.3 billion came from
The 10-K puts the unrealized loss on Bitmine’s digital assets at $6,229.1 million, against an unrealized gain of $805.0 million in fiscal 2025. Bitmine reports its crypto at fair value, so every move in the ETH price runs straight through its income statement whether or not it sells a single coin.
The filing’s own tables show how hard the year was. Bitmine’s ETH was carried at about $4,406 per coin on Aug. 31, 2025, and about $2,467 a year later, a drop of roughly 44%. Over the twelve months, ETH traded on Coinbase between $1,506 and $4,763, the company said.
A few smaller items moved the total in both directions. Bitmine booked a $143.7 million net loss on ETH-referenced derivative contracts, a $257.9 million gain from a change in the fair value of a warrant liability and a $92.3 million tax benefit. General and administrative expenses were $376.9 million, up 4.4% from the year before.
It paid more for its ETH than it is worth
At year-end Bitmine held 5,901,837 ETH with a cost basis of $19.95 billion and a fair value of $14.56 billion. That works out to an average cost of about $3,380 per coin, and a stack worth roughly 27% less than the company paid for it. The holding grew by about 4.03 million ETH during the year, from 1,874,927 coins.
Shareholders funded most of that buying. Bitmine sold 395,136,273 shares through its at-the-market program for $13.2 billion in gross proceeds, and its share count rose from 232.4 million to 613.3 million over the fiscal year. The program allows up to $24.5 billion in sales. By Nov. 4, 626,451,021 shares were outstanding.
The buying has not stopped. In its Nov. 9 holdings update, Bitmine said it owned 6,070,092 ETH, or 4.97% of the 122.2 million supply, after adding 9,587 ETH the previous week. With ETH near $2,067 on Wednesday, according to CoinGecko, that stake is worth about $12.5 billion. The filing gives no cost figure for coins bought since August, but ETH now trades about 39% below the year-end average cost.
“Bitmine has bought ETH each week since the inception of the ETH Treasury Strategy on June 30, 2025,” chairman Thomas “Tom” Lee said in that update. AltcoinReporter tracked the holding at 5.79 million ETH in July.
Staking is now the business
Revenue rose to $124.8 million from $6.1 million, and staking and validation brought in $121.4 million of it, about 97%. Bitmine says its staked ETH earns a gross annual rate of roughly 2.5% to 4.0%. As of Nov. 8 it had 5,227,037 ETH staked, about 86% of its holdings, some of it through MAVAN, the validator platform built on the Pier Two business it bought in March.
That income is real, but it is small next to the swings in the balance sheet. Staking revenue for the year was about a third of general and administrative costs, and less than 2% of the unrealized loss. The company also pays a 9.50% dividend on preferred stock it sold in June, and its risk factors list dividend coverage as a concern given volatile staking yields and ETH prices. The report also says Bitmine is still working to fix material weaknesses in its internal control over financial reporting.
The Nov. 9 update leaned on Vitalik Buterin’s recent comments that ETH should be treated as a store of value, a theme AltcoinReporter covered on Sunday. The Block also reported the annual loss.
What to watch next
Bitmine says its aspiration is to hold about 5% of all ETH, and at 4.97% it is close. Getting there and beyond depends on its ability to keep selling stock or debt, which the filing says it intends to do subject to market conditions.
The next set of numbers will show whether the losses kept coming. Coins Bitmine already held on Aug. 31 were marked at about $2,467. If ETH stays well below that level through the end of November, those coins will carry a further paper loss in the fiscal first quarter, though the final figure will depend on where ETH closes the period.
FAQ
Did Bitmine sell ETH to realize this loss?
No. The 10-K says the $6.3 billion net loss came substantially from unrealized fair value changes in its ETH and BTC holdings. The company kept buying through the year and after it.
How much ETH does Bitmine own now?
Bitmine said it held 6,070,092 ETH as of Nov. 8, about 4.97% of the supply, with 5,227,037 ETH staked.
What did Bitmine pay for its ETH?
At Aug. 31 its 5,901,837 ETH had a cost basis of $19.95 billion, or about $3,380 per coin, against a fair value of $14.56 billion.
Disclaimer: This article is for informational purposes only and does not constitute financial advice.
