0001493152-26-016560
SEC filingBitmine reported a net loss of $3.8B for Q2 FY26, driven by a $3.8B unrealized loss on digital assets, despite revenue growth to $11M from staking and other services.
For the three months ended February 28, 2026, Bitmine reported total revenue of $11.0 million, a substantial increase from $1.5 million in the same period last year. This growth was driven by new staking revenue ($10.2 million) from Ethereum native staking initiated in November 2025, along with modest contributions from consulting ($0.2 million) and leasing ($0.4 million). Self-mining revenue declined to $0.2 million from $1.5 million due to relocation and winding down operations. Gross profit rose to $9.6 million (87.1% margin) versus $0.1 million (5.1% margin) in the prior year, reflecting the high-margin staking business.
Operating expenses surged to $3,850.2 million from $1.0 million, almost entirely due to a $3,775.2 million unrealized loss on digital asset holdings resulting from fair value remeasurement under ASU 2023-08. General and administrative expenses also increased to $75.0 million from $1.0 million, driven by stock-based compensation, custodian fees, and one-time capital raising costs. Consequently, the loss from operations was $3,840.6 million versus $0.9 million a year ago.
Other income (expense) contributed a net gain of $22.2 million, including $80.0 million from the change in fair value of warrant liability, $24.1 million option premium income, and $4.8 million interest income, partly offset by $21.5 million unrealized loss on trading securities and $65.3 million unrealized loss on derivatives. The pre-tax loss was $3,818.4 million, compared to $1.2 million last year. Net loss per share was ($8.40), down from ($0.58).
For the six-month period, revenue totaled $13.3 million (up from $2.7 million), with a net loss of $9,022.5 million (versus $2.1 million), including a $92.3 million income tax benefit from the release of a valuation allowance.
As of February 28, 2026, total assets were $9,894.3 million, up from $8,795.1 million at August 31, 2025, primarily due to a $5.3 billion increase in digital assets (fair value) and $367.6 million higher cash. Cash and cash equivalents stood at $879.6 million. Total liabilities decreased to $36.2 million from $102.3 million, mainly due to the elimination of a $92.3 million deferred tax liability and the addition of $18.6 million warrant liability. Stockholders' equity rose to $9,858.1 million from $8,692.8 million, despite an accumulated deficit swing from $337.4 million (positive retained earnings) to a deficit of $8,689.4 million, as additional paid-in capital surged from $8,355.4 million to $18,547.4 million from massive equity issuances.
The company's working capital (current assets minus current liabilities) was $869.5 million, indicating strong liquidity.
For the six months, net cash used in operating activities was $316.6 million, compared to $0.3 million in the prior year. The primary driver was the large net loss adjusted for non-cash items: unrealized losses on digital assets ($9,023.1 million), unrealized gains on warrant liability ($247.6 million), and noncash staking revenue ($11.2 million). Working capital changes consumed cash, notably from other current liabilities ($63.1 million) and deferred taxes ($92.3 million benefit). Investing activities used $9,742.8 million, including $9,537.0 million for digital asset purchases and $206.0 million for equity investments. Financing activities provided $10,427.0 million, mainly from ATM proceeds ($10,068.9 million) and issuance of liability-classified warrants ($361.8 million). Free cash flow (operating cash flow minus capex) was approximately ($317.0 million), reflecting heavy investment in digital assets.
Despite the large operating cash outflow, the company ended the period with $879.6 million cash, up from $512.0 million, due to substantial financing inflows.
Management emphasized a strategic pivot to an Ethereum-focused, capital-light model centered on digital asset treasury management and staking. The company views ETH as a long-term reserve asset and aims to be a significant holder. Staking is expected to be the primary yield generation strategy. The consulting agreement with a third-party service provider incurs annual fees of $40–$50 million, which management expects to be offset by staking revenue. The company maintains access to capital through an ATM program with $6.7 billion remaining capacity. Key risks include ETH price volatility, regulatory developments, and counterparty risks. No specific quantitative forward guidance was provided.
The company operates as a single segment. Revenue concentration: One customer accounted for 6% of revenue in Q2 and 15% year-to-date. Digital assets consist of 195 BTC (fair value $13.1 million) and 4,473,459 ETH (fair value $8,793.2 million). The company accounts for digital assets at fair value with changes in net income per ASU 2023-08. Stock-based compensation included $24.4 million for RSUs and $115.8 million for options in the three months. The company issued 5,217,715 shares and liability-classified warrants in September 2025. A subsequent event includes the acquisition of Pier Two Holdings for ~$30.5 million and an additional investment in Eightco.