BitMine earned $46M staking ETH, lost $92M on options

BitMine reported $46.5 million in revenue for its fiscal third quarter ended May 31, driven largely by Ethereum staking and validation, and an $83.6 million net loss for the period.

The filing shows about 98% of the quarter’s revenue-roughly $45.7 million-came from staking and validation as the company shifted focus toward an Ethereum‑centred treasury. Derivatives activity produced a $92.1 million loss on Ethereum‑linked options during the quarter, erasing the staking gains.

Breakdowns in the filing attribute $78.6 million of the options loss to contracts that expired during the period and about $14 million to exercised positions. Contracts that remained open generated a $534,000 gain. BitMine had no reported derivatives activity in the comparable quarter a year earlier.

Over the first nine months of the fiscal year, derivative losses totaled $133.3 million while staking and validation generated $56.9 million. The filing indicates the company’s treasury program relied primarily on selling put options as a source of premium income or to facilitate asset purchases.

Operating expenses rose as well. General and administrative costs increased to $37.3 million from $744,000 a year earlier, with the company attributing the rise to digital‑asset custody and treasury management fees, higher salaries, and increased cash and stock‑based compensation for directors. On a non‑GAAP basis that excludes several noncash items, adjusted net loss for the quarter was about $70.8 million. The filing notes staking revenue covered cost of sales and administrative expenses before digital‑asset valuation changes.

BitMine financed much of its Ethereum accumulation through equity issuance. During the nine months ended May 31, the company sold roughly 340.7 million BMNR common shares through an at‑the‑market program, raising $11.87 billion after issuance costs, and spent about $11.69 billion to buy ETH. Outstanding common shares rose 149%, 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 with a cumulative cost basis of $19.05 billion and a reported fair value of $10.86 billion, about 43% below cost. The unrealized markdown produced a $9.04 billion digital‑asset loss in the first nine months and contributed to a $9.1 billion net loss for that period. Shareholders approved raising authorized common shares from 500 million to 50 billion in January.

Long‑term agreements added recurring costs. BitMine recorded $12.8 million in the quarter under a 10‑year consulting agreement with Ethereum Tower, equal to about 28% of the quarter’s staking and validation revenue. Fees under that agreement reached $37.5 million over nine months, and the company expects annual costs between $40 million and $50 million; the contract is largely noncancelable and could require substantial payments if terminated without cause. A separate 10‑year management services agreement tied to BitMine’s MAVAN validator grants Ethereum Tower a 2% membership interest and a monthly payment based on native staking rewards; expenses from that agreement had not been recognized as of May 31.

On the balance sheet, BitMine reported $340.3 million in cash, $433.1 million in working capital, no conventional debt, roughly $11.63 billion in total assets and about $30.1 million in total liabilities. The company used $287.6 million of cash in operating activities in the first nine months and after the quarter sold 3.5 million shares of 9.5% perpetual preferred stock for $273.8 million, creating an estimated $33.25 million in annual preferred dividends.

The filing states existing cash, expected operating cash flows and access to the company’s shelf registration and at‑the‑market program should provide sufficient liquidity for at least the next 12 months. The document lists staking revenue, management fees, option results, access to capital markets and the market value of Ethereum holdings as factors that will affect future results.