Bitmine Immersion Technologies (BMNR), the largest corporate Ethereum treasury holder, reported a staggering net loss of $3.82 billion for the quarter ended February 28, 2026, according to its latest 10-Q filing. The loss was primarily driven by unrealized losses on its massive Ethereum holdings due to fair-value accounting rules, reflecting the token's price drawdown from highs near $4,900 in August 2025.
The company, which has transformed from a mining operation into a leveraged Ethereum treasury play, holds approximately 4.87 million ETH at an average cost of $2,206 per token. As of April 12, 2026, Ether was trading around $2,325, placing the company's position roughly 5% above its average entry point. The reported loss stems from mark-to-market accounting adjustments, not from selling assets at a loss.
Despite the paper loss, Bitmine's core Ethereum strategy continues to generate yield. The company reported $10.2 million in quarterly revenue from ETH staking rewards, which constituted the vast majority of its total $11 million revenue for the period. This highlights the dual nature of its treasury model: carrying significant valuation risk while producing ongoing staking income.
The filing reveals a dramatic corporate transformation over the past six months. Bitmine doubled its outstanding shares from 232 million to 494 million between August 31, 2025, and February 28, 2026. Additional paid-in capital surged from $8.36 billion to $18.55 billion, with those funds being deployed directly into Ethereum acquisitions. The company now holds nearly 5% of all ether in existence, making it the second-largest corporate crypto treasury globally.
Operating metrics show significant shifts. Self-mining revenue collapsed by 86% year-over-year to just $219,000 for the quarter, while general and administrative expenses ballooned to $75 million, up from $964,000 a year earlier. For the full six-month period, G&A reached $298.6 million against only $13.3 million in revenue.
The filing also disclosed previously unknown derivatives exposure. Bitmine booked $65.3 million in unrealized losses on derivatives and $24.1 million in option premium income during the quarter, suggesting the company is running options strategies—likely covered calls—on its ETH holdings to generate additional yield.
As of February 28, Bitmine held $879.6 million in cash, 198 Bitcoin, a $200 million stake in Beast Industries, and an $85 million position in Eightco Holdings. Chairman Tom Lee stated in March that the company views the ether pullback as "attractive, given the strengthening fundamentals," and noted that Bitmine has accelerated its buying pace over the past four weeks.
