BitMine Reports $6.3B Annual Loss, But Calculated Q4 Shows $2.8B Profit on ETH Gains
BitMine's annual filing with the SEC reports a $6.3 billion net loss for the fiscal year ended August 31, driven by $6.2 billion in unrealized Ethereum losses. Sources differ on the final quarter: CryptoSlate's calculation implies a $2.8 billion net profit for June through August, while CryptoPotato reports only the full-year figures.
Written by CoinArticle’s AI Newsroom · from 2 cited sources. How we work
The Annual Loss
BitMine reported a net loss of $6.3 billion for the fiscal year ended August 31, according to its annual report filed with the SEC on November 10. CryptoPotato reported that about $6.2 billion of the loss came from unrealized losses on Ethereum holdings, as ETH traded between $1,506 and $4,763 on Coinbase over the year. The company said that under ASC 350-60, digital assets are carried at fair value, so price declines hit reported results even when no assets are sold.
The company ended the fiscal year with 5,901,837 ETH, up from 1,874,927 a year earlier. Those holdings cost $19.9 billion and were valued at $14.6 billion at year-end prices. BitMine's combined crypto, cash and equity holdings stood at $15.4 billion at year-end and $14.3 billion as of November 8, according to its Monday update.
The Calculated Final Quarter
CryptoSlate, which derived figures for the June through August period by subtracting nine-month results from the full-year filing, calculated a net income of roughly $2.8 billion for that quarter. The figure rests on an unrealized digital asset gain of about $2.8 billion in the same window. The cumulative unrealized loss had narrowed from about $9 billion through May to $6.2 billion for the full year, which is the mechanism behind the swing.
The two outlets frame the same filing differently. CryptoPotato centers the annual loss, while CryptoSlate's analysis shows the final quarter was profitable on paper. BitMine did not report a quarterly figure separately, so the quarterly profit is a derived number and not one the company itself published. CryptoSlate also notes its calculated net income is measured before preferred distributions, and that revaluation figures are pre-tax while net income is after tax.
Cash, Options and Revenue
The accounting gains did not produce cash. CryptoSlate calculated $17.5 million of operating cash outflow in the June through August quarter, and the full-year operating outflow was $305.1 million. Staking and validation supplied $121.4 million, about 97% of revenue, for the year, and CryptoSlate estimates $64.4 million of that came in the final quarter.
CryptoPotato also reported that BitMine began selling ETH put options in the quarter ended February 28, 2026. Those trades lost a net $143.7 million over the year, and the company said option losses could affect its ability to pay dividends on the 9.50% preferred stock it launched in June. General and administrative expenses rose to $376.9 million from $361.1 million, mainly due to ETH custody fees and higher staff and board compensation.
What the Filing Does Not Settle
Both outlets rely on the same SEC filing, so the disagreement is about framing and derivation rather than underlying data. CryptoSlate's quarterly figures are arithmetic constructions, and the filing's own line items remain the authoritative record. Neither source addresses how the final quarter's profit will look against the ETH price movements after August 31, and CryptoSlate cautions that August results do not describe November performance.
Why It Matters
For Traders
BitMine's ETH holdings are large enough that its valuation swings can be read as a sentiment signal, but the reported profits are accounting-driven and do not represent cash inflows.
For Investors
The gap between paper gains and negative operating cash flow shows that treasury-company earnings track token prices, so long-horizon investors should separate revaluation from revenue when assessing these firms.
For Builders
Fair-value accounting under ASC 350-60 means protocol-linked treasury strategies can swing reported results sharply, so builders integrating with such firms should model both revaluation and cash flow.
This article is for information only and is not financial advice. Read the full disclaimer.
