Bitmine posts $6.3 billion net loss for fiscal 2026 as ether fell

Bitmine Immersion Technologies reported a net loss of $6.31 billion for the fiscal year ended Aug. 31, 2026, down from net income of $348.6 million the prior year, its Form 10-K shows. Falling ether prices drove most of the hit: the company recorded a $6.2 billion unrealized loss on digital assets, Cointelegraph reported.

The company's 5,901,837 ETH carried a fair value of $14.56 billion at year-end against a cost basis of $19.95 billion, roughly $5.4 billion below cost, Unchained reported. Bitmine held $15.4 billion in total assets and $33.7 million in liabilities at fiscal year-end, Cointelegraph reported. Assets also included $545 million in cash, 211 bitcoin valued at $16.6 million, $186 million in Beast Industries shares and $77 million in Eightco Holdings shares.

Revenue rose to $124.8 million from $6.1 million, with staking and validation accounting for $121.4 million, or 97% of the total. Bitmine also booked a $143.7 million net loss on ether-referenced derivative contracts and had none open at year-end, Unchained reported.

The 10-K says internal controls over financial reporting were still not effective at the close of the fiscal year, the second annual report in a row to reach that conclusion. Management first reported material weaknesses as of Aug. 31, 2025, spanning all five components of the COSO internal-control framework. During fiscal 2026 the company brought in outside advisors, installed an enterprise resource planning system and added accounting staff, but many of the new controls had not operated long enough to show they work. Bitmine replaced auditor Bush & Associates with KPMG in April.

The company is nearing its stated goal of holding 5% of the ether supply. A November holdings update put its stake at 6,070,092 ETH, or 4.97% of supply, with an estimated $309 million in annualized rewards on the 5.23 million ETH it had staked, Cointelegraph reported. Chairman Tom Lee told an audience at Token2049 in Singapore on Oct. 7 that 5% of ether's supply is a "hard cap" for the company's holdings.

After the fiscal year closed, Bitmine ended its management services agreement with Ethereum Tower LLC, effective Sept. 3, without paying a termination fee. A day later, its staking platform MAVAN signed a 10-year advisory deal with American Validator LLC, an Ethereum Tower affiliate, for 1.5% of staking rewards on Bitmine's staked ETH. Bitmine is also moving its fiscal year-end to Dec. 31 and expects to file a transition report covering Sept. 1 through Dec. 31, 2026. Revenue of $124.8 million came in above the $119.8 million average analyst estimate listed by Yahoo Finance, Cointelegraph reported. The company filed the 10-K after the market closed on Tuesday.

Bitmine's Monday update said its holdings grew to 6.07 million ETH during the week after the fiscal year closed, while the 10-K puts the Aug. 31 stake at about 4.9% of circulating supply. Chairman Tom Lee has framed the 5% level as a ceiling the company will not cross, a stance Zero Knowledge Group founder Austin Campbell described on Unchained's Bits + Bips podcast in October: "Tom Lee said he won't hold more than 5% of ETH supply. Currently he holds about 4.9%."

The 10-K covers the 12 months through Aug. 31, 2026, and it is the second consecutive annual report to flag control problems that span accounting staff, systems and review procedures. Bitmine is the largest corporate ether holder, and the size of the markdown illustrates how much of its balance sheet moves with the token's price.

Its shares closed 2.8% lower at $18.08 on Tuesday, bringing the year-to-date decline to 33%, according to Yahoo Finance figures cited by Cointelegraph.