In its recent 10-Q filing, Bitmine Immersion Technologies disclosed a substantial quarterly net loss of $3.8 billion as of Tuesday. The company increased its share count significantly from 232 million to 494 million between August 31 and February 28.
During the same period, additional paid-in capital surged from $8.36 billion to $18.55 billion, with these funds being allocated directly into Ethereum (ETH). As of April 12, Bitmine held 4.87 million ether, averaging a cost of $2,206 per token, positioning it as the largest corporate Ethereum treasury worldwide and second-largest in terms of corporate crypto treasuries after Strategy.
The investment is currently slightly under water; ETH was trading near $2,325 on Wednesday, about 5% higher than Bitmine’s average purchase price. The reported unrealized losses of $3.78 billion reflect the drop from Ether’s peak of approximately $4,900 in August 2025 rather than its cost basis.
Under fair-value accounting rules instituted in 2024, these market fluctuations impact the profit and loss statement regardless of actual sales activities.
Bitmine’s shift from a mining company to an ETH-focused treasury strategy has introduced new challenges. Revenue from self-mining plummeted by 86% year-over-year, amounting to $219,000 for the quarter, while staking replaced it entirely, contributing $10.2 million towards the total quarterly revenue of $11 million.
General and administrative expenses soared to $75 million for the quarter, up from $964,000 a year prior. Over six months, G&A costs reached $298.6 million against merely $13.3 million in revenue. This disparity is partly attributed to stock-based compensation tied to equity raises, highlighting the significant gap between operational costs and revenues for a company now focused on holding and staking ETH.
The filing also revealed previously undisclosed derivative exposures.
Bitmine recorded $65.3 million in unrealized losses from derivatives alongside $24.1 million in option premium income during the quarter, indicating possible engagement with options strategies such as covered calls to enhance yield from its ETH holdings.
Chairman Tom Lee remarked in March that the recent decline in Ether’s value appears attractive given the strengthening fundamentals and noted an accelerated purchasing pace over the past four weeks.
As of February 28, Bitmine held $879.6 million in cash, alongside 198 bitcoins, a $200 million investment in Beast Industries, and an $85 million stake in Eightco Holdings.