The Cost of Buying the Dip: Inside BitMine’s Massive $6.3 Billion Ethereum Loss
BitMine disclosed a $6.3 billion net loss for its fiscal year ended August 31, primarily due to falling Ethereum prices.
BitMine reported a staggering $6.3 billion net loss for its fiscal year ended August 31, in an annual report filed with the SEC on Tuesday. The massive loss stemmed almost entirely from the declining value of Ethereum (ETH), with the company booking $6.2 billion in unrealized losses.
Over the fiscal year, ETH traded on Coinbase as high as $4,763 and as low as $1,506. The former Bitcoin miner ended fiscal 2026 with 5,901,837 ETH, up from 1,874,927, which had cost $19.9 billion but were worth only $14.6 billion at year-end prices.
Because we account for digital assets at fair value under ASC 350-60, price declines are immediately reflected in our results of operations, which may result in significant reported net losses even when we have not sold the assets.
Option Trading Losses
The firm began selling ETH put options in the quarter ended February 28, 2026, which pay premiums upfront but can cost money if ETH falls below an agreed price. These option trades, mostly put sales, resulted in a net loss of $143.7 million over the year, though BitMine had no open option contracts at year-end.
Staking Revenue
Despite the losses, staking and validation operations supplied $121.4 million, or about 97% of BitMine's revenue. The company began staking its own ETH in November 2025 and later acquired Australian staking provider Pier Two in March, folding it into MAVAN, its staking platform.
General and administrative expenses rose to $376.9 million from $361.1 million, primarily due to ETH custody fees and higher compensation for staff and board members. BitMine warned that option losses could impact its ability to pay dividends on its 9.50% preferred stock offering.
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