Key Takeaways
- Bitmine reported a $6.23 billion unrealized cryptocurrency loss and a $6.31 billion annual net loss, as Ethereum fell approximately 44% during its fiscal year ended Aug. 31, 2026.
- Annual revenue surged to $124.8 million, primarily from Ethereum staking, but operating expenses and cryptocurrency valuation losses overwhelmed those gains.
- Bitmine increased its holdings to 6.07 million ETH by Nov. 8, reaching approximately 4.97% of Ethereum’s circulating supply, while generating an estimated $309 million in annualized staking revenue.
According to its annual filing with the SEC, Bitmine recorded a net loss of $6.31 billion for the fiscal year ended Aug. 31, 2026, reversing a $348.6 million profit in the previous year. The unrealized cryptocurrency loss compared with an $805 million unrealized gain in fiscal 2025.
Ethereum’s price fell approximately 44% during the reporting period, dropping from $4,391.91 on Aug. 31, 2025, to $2,467.65 on Aug. 31, 2026, according to historical data. The decline substantially reduced the value of Bitmine’s ether holdings as the company continued accumulating the cryptocurrency.
The losses were largely attributable to ether. Bitmine’s filing identified approximately $6.22 billion in negative fair-value adjustments to its ETH holdings during the year, alongside a much smaller loss on bitcoin.
As of Aug. 31, Bitmine held 5,901,837 ETH with a cost basis of $19.95 billion and a fair market value of $14.56 billion. That represented a roughly $5.39 billion shortfall relative to the acquisition cost of its remaining ether holdings. The figure differs from its annual unrealized loss because the company continued purchasing and receiving ETH throughout the reporting period.
Despite the losses, Bitmine reported substantial revenue growth following its transition from bitcoin mining toward an ether-focused treasury and staking business. Annual revenue increased to $124.8 million from $6.1 million in fiscal 2025, including $121.4 million generated from staking and validation activities. The company began native ETH staking in Nov. 2025, establishing a new source of recurring income from its cryptocurrency holdings.
However, general and administrative expenses reached $376.9 million, exceeding total revenue. Bitmine also recorded $143.7 million in losses on derivative contracts and a $22.9 million decline in the value of its investment in Eightco Holdings.
Bitmine Nears 5% ETH Milestone
The financial results come as Bitmine approaches its long-standing goal of controlling 5% of ether’s circulating supply.
As Bitcoin.com News reported Monday, the company purchased another 9,587 ETH worth approximately $20 million, bringing its holdings to 6,070,092 tokens as of Nov. 8. That represented roughly 4.97% of Ethereum’s circulating supply, leaving Bitmine approximately 40,000 ETH short of its target. The firm said it plans to stop buying ETH once it reaches that milestone.
Chairman Tom Lee has maintained an optimistic outlook despite the market downturn. In the company’s latest update, Lee praised Ethereum co-founder Vitalik Buterin’s recent characterization of ETH as a store of value, describing the shift as a significant development for Ethereum’s role in tokenized finance.
Bitmine also reported approximately 5.23 million ETH staked as of Nov. 8, generating an estimated $309 million in annualized staking revenue at prevailing yields.
Meanwhile, Bitcoin.com News previously reported that Bitmine repurchased approximately 22.9 million of its own shares for $399.6 million during 2026, reflecting management’s view that its stock was undervalued relative to the company’s assets.
The latest annual figures underscore the financial risks of Bitmine’s concentrated ether strategy. While staking provides recurring revenue, fluctuations in ETH’s market price can produce multibillion-dollar changes in reported earnings, even without the company selling its holdings.
