Bitmine Posts $3.8B Q1 Loss After ETH Markdown
Bitmine reported a $3.8 billion Q1 net loss driven by a $3.78 billion markdown on Ethereum holdings and described market conditions as a “mini crypto winter.”
Bitmine reported a $3.8 billion net loss for the first quarter, driven by a $3.78 billion markdown on its Ethereum holdings, according to the company’s quarterly results and an 8-K filing. The filing described current market conditions as a “mini crypto winter.”
The company continued buying through the quarter, adding 61,000 ETH in March. Bitmine said it expanded its ETH treasury from about 625,000 ETH three quarters ago to more than 4.6 million ETH today. The company holds roughly 3.8% of the total ETH supply and says it is on track to acquire 5% and stake those tokens to earn rewards. Bitmine reported an average cost basis of $2,205 per ETH; ETH traded around $2,324.42 at the time of the filing.
In the filing, Bitmine attributed the quarterly hit to a slide in ETH prices into a $2,000–$2,500 range during Q1. The company noted that, for the first time, ETH entered a bear phase while U.S. equities were rallying, a divergence from prior downturns that coincided with stock market weakness.
The company is shifting from self-mining to staking. Mining revenue in Q1 fell to $219,000, while staking generated $10.2 million. Bitmine reported it phased out most mining activity in 2025 and 2026 and expects staking to provide ongoing ETH rewards.
Operating costs rose. General and administrative expenses climbed to $75 million in Q1, compared with just under $1 million in the same quarter of 2025. Total expenses exceeded revenues for the period. The filing also flagged compensation obligations tied to earlier equity raises that the company must cover while operating with elevated expenses.
Bitmine reiterated a long-term price target for Ethereum of $62,500 per ETH and said it plans to continue acquiring ETH through ongoing fundraising and weekly purchases, then staking holdings to capture rewards. Following the Q1 results, Bitmine’s stock (BMNR) traded near $21.68, close to its 2026 low. The company cited geopolitical events, including the Iran conflict, as factors worsening investor sentiment.
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