Bitmine Immersion Technologies has become the Ethereum version of the strategy, doubling its shares outstanding in six months and raising more than $10 billion in equity capital to amass nearly 5% of all ether (ETH) in existence.
It reported a quarterly net loss of $3.8 billion in its 10th quarter on Tuesday, as the number of shares (common stock) increased from 232 million to nearly 494 million between August 31 and February 28.
Additional paid-in capital increased from $8.36 billion to $18.55 billion during the same period, and these funds went directly to 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 in the world and the second largest corporate crypto treasury behind Strategy.
Ether traded near $2,325 on Wednesday, about 5% above Bitmine’s average entry at $2,206. The $3.78 billion in unrealized losses in the quarter’s income statement reflect fair value accounting, which evaluates assets to be marketed each period. ETH fell sharply during the quarter from high levels, generating a paper loss even though the position remains profitable on a cost basis.
Under fair value accounting rules adopted in 2024, these market value fluctuations are reflected on the income statement regardless of whether the company sold anything.
But transforming a mining company into a leveraged ETH cash play creates its own set of pressures.
Self-mining revenue collapsed 86% year-over-year to $219,000 for the quarter. Staking 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 for the quarter, compared to $964,000 a year earlier. For the entire six-month period, G&A reached $298.6 million against just $13.3 million in revenue. Some of this likely reflects stock-based compensation tied to equity raises, but the gap between operating costs and operating revenue is glaring for a company whose primary product is now holding and staking on a single token.
The filing also reveals exposure to derivatives that had not previously been detailed.
Bitmine recorded $65.3 million in unrealized derivatives losses and $24.1 million in options premium revenue during the quarter, suggesting the company is implementing options strategies on its ETH holdings, possibly hedged with calls to generate additional yield.
Chairman Tom Lee said in March that the company viewed ether’s pullback as “attractive, given strengthening fundamentals,” and noted on Monday that Bitmine had accelerated its buying pace over the past four weeks.
Bitmine held $879.6 million in cash as of February 28, along with 198 bitcoins, a $200 million stake in Beast Industries, and an $85 million position in Eightco Holdings.
