0001493152-26-002084
SEC filingBitmine reported a net loss of $5.2B driven by a $5.25B unrealized loss on digital assets, even as revenue rose 91% from new staking and leasing activities.
Bitmine reported total revenue of $2.29 million for the three months ended November 30, 2025, a 91% increase from $1.20 million in the same period last year. The growth was driven by new revenue streams: leasing ($1.11 million), staking ($0.98 million), and consulting ($0.20 million), partially offset by the wind-down of mining equipment sales (zero vs $0.72 million) and self-mining ($0.002 million vs $0.48 million). Cost of sales decreased 18% to $1.02 million, yielding a gross profit of $1.27 million compared to a gross loss of $0.01 million in the prior year. Gross margin improved to 55.3%.
Operating expenses surged to $5.47 billion from $0.87 million, overwhelmingly due to a $5.25 billion unrealized loss on digital assets holdings under fair value accounting (ASU 2023-08). General and administrative expenses ballooned to $223.4 million from $0.96 million, primarily from one-time capital raising, advisory, legal, and consulting fees tied to the company’s pivot to an Ethereum treasury strategy. An impairment charge of $0.2 million was recorded on property and equipment. The operating loss was $5.47 billion, versus $0.88 million in the prior year.
Other income included a $158.2 million gain from the change in fair value of warrant liabilities, a $15.9 million unrealized gain from the Eightco investment, and a $92.3 million income tax benefit from the release of a valuation allowance. Net loss attributable to common stockholders was $5.20 billion, compared to a net loss of $3.94 million (including a $2.96 million deemed dividend) in the prior year. Basic and diluted EPS were ($15.98) versus ($1.66).
Total assets increased to $11.49 billion as of November 30, 2025 from $8.80 billion at August 31, 2025, driven by a $2.28 billion increase in digital assets (fair value) and a $375.7 million increase in cash. Digital assets, primarily Ethereum (3.74 million ETH valued at $10.54 billion) and Bitcoin (193 BTC at $17.45 thousand), accounted for 92% of total assets. The company also recorded an investment in Eightco Holdings common stock of $35.9 million.
Liabilities rose to $235.7 million from $102.3 million, mainly due to a $125.0 million unsettled digital asset trade and a $98.6 million warrant liability (fair value). Total stockholders’ equity increased to $11.25 billion from $8.69 billion, reflecting net proceeds from ATM and warrant issuances offset by the massive net loss.
Working capital (current assets minus current liabilities) improved to $751.9 million from $503.0 million, driven by the large cash balance. The company has no debt outstanding.
Net cash used in operating activities was $228.4 million, a significant increase from $0.1 million in the prior year, reflecting the one-time professional fees and consulting expenses. The large net loss was largely non-cash due to the $5.25 billion unrealized loss on digital assets and the $158.2 million gain on warrant liability remeasurement. Cash from investing activities was -$7.42 billion, dominated by $7.40 billion in purchases of digital assets (ETH) and $20 million in equity securities. Financing activities provided $8.03 billion, primarily from the ATM program ($7.66 billion net) and issuance of liability-classified warrants ($361.8 million). Free cash flow (operating cash flow minus capex) was -$228.7 million.
The company’s liquidity is heavily dependent on its ability to access equity capital markets via its shelf registration and ATM program, and on the value of its digital asset holdings. Management believes existing cash and capital access are sufficient for at least 12 months.
Management emphasized the strategic pivot to an Ethereum-centric, asset-light model, focusing on ETH treasury management, staking, consulting, and leasing. The company’s primary objective is to grow its net ETH position over time. Key drivers include ETH market conditions, client demand for advisory services, and access to capital. The consulting agreement with a third-party service provider (expected annual fees of $40-$50 million) is expected to be offset by staking fees from the ETH portfolio, though no assurances are given.
The company disclosed estimated material cash requirements for the next 12 months: $40-$50 million in management fees, $1.5 million in capex, ~$12 million in working capital, $4 million in public company costs, and $83 million in general overhead. No numerical guidance for revenue or earnings was provided.
The company operates as a single reportable segment. Revenue concentration: one customer accounted for 57% of total revenue in the current period (none in prior year). The fair value of digital assets is based on Coinbase quoted prices. The company uses the FIFO method for cost basis. The warrant liability valuation used a Black-Scholes model with inputs: stock price $33.12, exercise price $87.50, expected term 1.31 years, volatility 120%, risk-free rate 3.54%. Stock-based compensation expense was $0.68 million, primarily from RSUs granted in September 2025. Subsequent events include further ATM issuance of 46.2 million shares for gross proceeds of $1.52 million and a $0.01 per share dividend paid on December 29, 2025.