BitMine lost $6.31 billion in its 2026 financial year despite its staking revenue soaring. Behind this largely accounting loss appears a structural weakness. An annual return of a few percent is not enough to protect a crypto treasury when Ether drops 44%.
In brief
- BitMine records an annual loss of $6.31 billion, mainly linked to the fall of Ethereum.
- Despite $121.4 million in staking revenue, ETH’s 44% drop weighs heavily on its results.
- Losses remain largely accountable, but they weaken equity and accentuate financial risks.
- Financing ETH purchases by issuing shares exposes shareholders to increasing dilution.
- With almost 5% of Ethereum’s supply, BitMine must now prove that its strategy can generate sustainable profitability.
Staking is growing, but the drop in ETH is crushing it
BitMine recorded a net loss of $6.31 billion in the fiscal year ended August 31, 2026, compared to a profit of $348.6 million a year earlier. Most of the reversal comes from an unrealized capital loss of 6.23 billion on its cryptos.
Some figures make it possible to measure the gap between staking activity and exposure to the price of Ether:
- Annual revenue reached $124.8 million;
- Staking and validation generated 121.4 million, or 97% of the total;
- Unrealized capital losses on cryptos amounted to 6.23 billion;
- Administrative expenses reached $376.9 million;
- Ether lost around 44% during the exercise.
The crypto loss thus represents more than 51 years of staking income, if we take the level generated in 2026. This comparison does not constitute a projection, but it shows the asymmetry of the model: the return accumulates gradually, while the drop in the underlying immediately hits the entire stock.
BitMine recognizes this volatility in its report :
Changes in the price of ETH are expected to continue to cause significant volatility in our reported results, shareholders’ equity and financial condition.
The company values its cryptos at fair value, which shows fluctuations directly in its income statement.
An accounting loss which reveals a very real risk
The 6.23 billion does not correspond to an equivalent cash outflow. BitMine did not sell its Ethers at a loss: the depreciation remains largely latent and could be reduced if the price rebounds. It would therefore be misleading to equate it with an immediately payable invoice.
The decline nevertheless produces concrete economic consequences. As of August 31, BitMine held 5.9 million ETH acquired for $19.95 billion. Their market value no longer exceeded 14.56 billion, a negative difference of 5.39 billion on the tokens still held.
This difference weakens shareholders’ equity and increases the company’s dependence on financial markets. However, BitMine largely financed its transformation by issuing new shares. During the fiscal year, it sold 395.1 million securities through its pay-as-you-go program, raising $13.2 billion gross.
The model is therefore based on two drivers: the return on staking and the ability to raise capital to buy more ETH. The first provides recurring income, but modest compared to the size of the balance sheet. The second allows rapid accumulation, at the cost of potential shareholder dilution.
Even without a forced sale of Ethers, a lasting decline in the token can thus make future issues less advantageous. If BitMine stock depreciates, the company must distribute more shares to raise the same amount.
5% target turns BitMine into a bet on Ethereum
BitMine did not slow down its accumulation after the close of the fiscal year. As of November 8, it held 6.07 million Ethereum, approximately 4.97% of the circulating supply. More than 5.22 million tokens were staked, according to its last publication.
The company is thus close to its objective, called “Alchemy of 5%”. This concentration increases its potential revenue, but it also gradually reduces the distance between its operational activity and a massive directional bet on Ethereum.
Staking does not neutralize this risk. With an announced gross return of between 2.5% and 4%, several years are necessary to compensate for a drop of 44%, even assuming a stable price thereafter. Since the rewards themselves are paid in Ethereum, their dollar value also decreases when the token declines.
The central question is therefore not whether the loss of 6.31 billion is only accounting. It involves determining whether BitMine can withstand multiple volatile exercises without relying on ever-increasing emissions. Its accumulation goal is almost reached. The next test will be to prove that this reserve can produce sustainable profitability without the drop in Ether and dilution absorbing the profits.
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