Bitmine Immersion Technologies posted a net loss of $6.3 billion for the fiscal year ended Aug. 31, according to its Form 10-K filed Tuesday. The company recorded a $6.2 billion unrealized loss on its digital assets, mostly from lower Ether prices. A year earlier it reported a net profit of $348.6 million.
What the balance sheet shows
Bitmine ended the year with $15.4 billion in total assets and $33.7 million in liabilities. It held 5.9 million ETH worth $14.6 billion. It also reported $545 million in cash and cash equivalents, 211 bitcoin valued at $16.6 million, $186 million in Beast Industries shares and $77 million in Eightco Holdings shares.
The filing gives the cost of that ETH as $19.95 billion, against a fair value of $14.56 billion. The company reports crypto at fair value under accounting rule ASC 350-60, so price drops hit net income immediately, even when nothing is sold. Bitmine says the loss is mostly non-cash. It put its accumulated deficit at about $6.0 billion. During the year, ETH ranged from a low of $1,506 to a high of $4,763 on Coinbase, its pricing source. ETH changed hands near $2,055 at the time of writing.
Staking carries the income statement
Revenue totaled $124.8 million, above the $119.8 million average analyst estimate. Staking and validation brought in $121.4 million, or 97% of the total.
Bitmine began staking its own ETH in November 2025 and says gross rewards run at roughly 2.5% to 4.0% a year. Rewards arrive as ETH, not dollars, so the cash flow statement shows the staking income as non-cash. The company's operating activities used $305.1 million in cash. MAVAN, the staking platform built around the March acquisition of Pier Two, contributed $10.8 million of revenue. The filing also lists a $143.7 million loss on ETH option contracts, which was offset by a $257.9 million gain on the fair value of warrants.
In a Monday update, Bitmine said its holdings had grown to 6.07 million ETH, or 4.97% of supply. It estimated $309 million in annualized rewards on the 5.23 million ETH it had staked. That is lower than the $358 million annualized figure the company gave in its Nov. 2 update.
How the ETH was funded
Bitmine paid for its purchases mainly by selling stock. It sold 395.1 million shares through its at-the-market program for $13.2 billion in gross proceeds, and used $12.6 billion to buy digital assets. Shares outstanding rose to 613.3 million from 232.4 million a year earlier, so existing holders were heavily diluted.
The company also bought back 20.8 million shares at an average of $17 for $353.8 million, with $3.6 billion left on a $4.0 billion authorization. In June it sold 3.5 million shares of 9.50% redeemable preferred stock, ticker BMNP, for $271.5 million net. Those shares require about $33.3 million a year in dividends, paid weekly if the board declares them. The filing says staking income helps fund them, but a drop in ETH or in staking yields could squeeze coverage.
Controls, the stock and the 5% line
Bitmine shares closed 2.8% lower at $18.08 on Tuesday, which puts their decline this year at 33%. The filing came after the market closed.
The 10-K says management found that internal controls over financial reporting were not effective as of Aug. 31. The company cited material weaknesses that it had first reported a year earlier and says remediation is under way. KPMG replaced Bush & Associates as auditor in April, and signed an unqualified opinion on the financial statements. Bitmine is also changing its fiscal year-end to Dec. 31 and expects to file a transition report for September through December.
Chairman Tom Lee has said where the accumulation will stop. During a keynote at Token2049 in Singapore on Oct. 7, he called 5% of Ether's supply a "hard cap" for the company's holdings. At 4.97%, Bitmine is already close to that line.
Roman Zaika
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