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Bitmine Ethereum treasury brings nearly $3.8B in unrealized losses
Bitmine Immersion Technologies reported a net loss of $3.8 billion in Q1 2026 amid aggressive investments in Ethereum. Over six months, the company nearly doubled its outstanding shares and raised more than $10 billion.
Between August 31 and February 28, the number of common shares increased from 232 million to nearly 494 million. The funds raised were used to purchase Ethereum.
As of April 12, Bitmine held 4.87 million ETH at an average purchase price of $2,206 per token. This makes it the largest corporate holder of Ethereum globally and the second-largest corporate crypto treasury after Strategy.
The reported $3.78 billion in unrealized losses is due to fair-value accounting, under which assets are regularly marked to market. During the quarter, Ethereum declined significantly from higher levels, resulting in a paper loss in financial statements, even though the position remains profitable relative to the average entry price.
Moving away from mining
However, the shift from a mining company to a model focused on accumulating ETH using equity and debt capital is creating new pressures for Bitmine.
Mining revenue dropped 86% year-over-year to $219,000 for the quarter. Staking has now become the primary source of income, generating $10.2 million out of total quarterly revenue of $11 million.
General and administrative expenses reached $75 million for the quarter, compared to $964,000 a year earlier. For the six-month period, G&A totaled $298.6 million against just $13.3 million in revenue. Some of this increase likely reflects stock-based compensation tied to recent capital raises, but the gap between costs and operating income remains significant for a company whose business now largely revolves around holding and staking a single asset.
The filing also revealed previously undisclosed details about derivatives exposure.
During the quarter, Bitmine recorded $65.3 million in unrealized losses on derivatives and $24.1 million in option premium income. This suggests the company may be running options strategies on its ETH holdings, such as selling covered calls to generate additional yield.
Following Strategy’s playbook
The trend of building corporate crypto treasuries was largely set by Strategy (formerly MicroStrategy). Back in 2020, the company began aggressively accumulating Bitcoin, turning it into its primary balance sheet asset. Since then, Strategy has invested tens of billions of dollars and become the largest public holder of BTC, effectively betting on its long-term growth.
This model — raising capital through equity and debt issuance and allocating it to crypto — has become a blueprint for other companies. Now a similar approach is being applied to Ethereum: like Strategy, Bitmine is focusing on accumulating and holding the asset, making it a core part of its financial strategy.
Notably, Bitmine has also invested $200 million in MrBeast’s company to develop a DeFi platform and other financial products.
This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.
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