BitMine Staked $46M in Q3, Lost $92M on Ethereum Options

BitMine reported $46.5 million in revenue from Ethereum staking and validation in the fiscal third quarter ended May 31 and a $92.1 million loss on Ethereum-linked options in the same period, resulting in an $83.6 million net loss for the quarter.

Revenue rose to $46.5 million from $2.1 million a year earlier, with about $45.7 million, or roughly 98%, coming from staking and validation as the company shifted focus toward an Ethereum-centered treasury.

The options loss was the largest single drag on results. BitMine attributed $78.6 million of the $92.1 million derivatives loss to contracts that expired during the period and about $14 million to exercised positions. Open contracts produced a $534,000 gain. The company reported no derivatives activity in the comparable quarter a year earlier.

Over the first nine months of the fiscal year, derivatives losses totaled $133.3 million, while staking and validation generated $56.9 million. Filings show BitMine primarily sold put options as part of its treasury-management program. Selling puts generates premium income but can require purchasing assets or paying settlements if market prices move against the seller.

General and administrative expenses rose to $37.3 million from $744,000 in the prior-year quarter, driven by digital-asset custody and treasury-management fees, higher salaries, and increased cash and stock-based compensation for directors. On a non-GAAP basis and excluding several noncash items, BitMine reported an adjusted net loss of about $70.8 million. Staking revenue covered cost of sales and administrative expenses before digital-asset valuation changes.

BitMine financed most ETH purchases through equity issuance. During the nine months ended May 31, the company sold about 340.7 million BMNR shares under its at-the-market program and raised $11.87 billion after issuance costs, while spending about $11.69 billion to acquire ETH. Outstanding common shares rose from 232.4 million on Aug. 31, 2025, to 579.7 million at the end of May, and reached 603.2 million by July 9.

As of May 31, BitMine held 5.42 million ETH at a cumulative cost basis of $19.05 billion. Those holdings were valued at $10.86 billion on that date, an unrealized gap of about $8.2 billion, or 43% below cost. The position contributed to a $9.04 billion unrealized digital-asset loss in the first nine months and a $9.1 billion net loss for the period.

Long-term service agreements added recurring fees. BitMine recorded $12.8 million in the quarter under a 10-year consulting agreement with Ethereum Tower for consulting, asset management, custody and staking services, an amount equal to roughly 28% of the period’s staking and validation revenue. The contract is largely noncancelable; termination without cause could require payment of up to 85% of remaining fees. A separate 10-year management services agreement related to MAVAN gives Ethereum Tower a 2% membership interest in MAVAN and a revenue-linked monthly payment; the company had not recorded expenses under that agreement as of May 31. BitMine reported that a substantial portion of its ETH is staked through MAVAN and expects staking rewards to exceed the cost of managing those assets.

The balance sheet showed no conventional debt, $340.3 million in cash and $433.1 million in working capital at May 31, with total liabilities of about $30.1 million against $11.63 billion in assets, most of which are digital assets. The company used $287.6 million of cash in operating activities during the nine months, citing legal, advisory, consulting and capital-raising expenses tied to enlarging its ETH treasury. After the quarter, BitMine sold 3.5 million shares of 9.5% perpetual preferred stock for $273.8 million, creating an estimated $33.25 million in annual preferred-dividend obligations.

Management indicated existing cash, expected operating cash flows and access to its shelf registration and at-the-market program should provide sufficient liquidity for at least the next 12 months, while further expansion depends on continued access to capital markets and investor demand.