The Cost of Buying the Dip: Inside BitMine’s Massive $6.3 Billion Ethereum Loss

BitMine reported a $6.3 billion net loss for its fiscal year ended August 31, in an annual report filed with the SEC on Tuesday.

That whopping number came almost entirely from the falling price of Ethereum (ETH), booking $6.2 billion in unrealized losses. Over the fiscal year, ETH traded on Coinbase as high as $4,763 and as low as $1,506.

“Because we account for digital assets at fair value under ASC 350-60, price declines are immediately reflected in our results of operations, which may result in significant reported net losses even when we have not sold the assets,” BitMine said in the filing.

A Massive Loss

The former Bitcoin miner ended fiscal 2026 with 5,901,837 ETH, up from 1,874,927, costing $19.9 billion and was worth $14.6 billion at year-end prices. BitMine valued its combined crypto, cash and equity holdings at $15.4 billion on the same date, and its Monday update put that total at $14.3 billion as of November 8.

Moreover, the firm began selling ETH put options in the quarter ended February 28, 2026, the filing shows. Those puts pay BitMine a premium up front and can cost it money if ETH falls below an agreed price.

The company’s option trades, mostly put sales, lost a net $143.7 million over the year. It had no open option contracts at year-end and said it may use similar strategies again, while warning that option losses could hurt its ability to pay dividends on the 9.50% preferred stock offering it launched in June, as CryptoPotato reported.

Moving on, general and administrative expenses rose to $376.9 million from $361.1 million. That increase came mainly from ETH custody fees, plus higher pay for staff and board members, BitMine said.

Staking Brings in $121.4 Million

Staking and validation supplied $121.4 million, or about 97% of BitMine’s revenue. The company began staking its own ETH in November 2025.

In March, it bought Pier Two, an Australian staking provider, and folded it into MAVAN, the staking platform BitMine launched that month.

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