Bitmine Immersion Technologies reported a staggering $3.82 billion net loss for the first quarter of 2026, primarily driven by a $3.78 billion unrealized markdown on its massive Ethereum (ETH) holdings. The disclosure was made in a Tuesday filing with the U.S. Securities and Exchange Commission (SEC). Despite the colossal paper loss, the company's revenue for the quarter was $11 million, with $10.2 million coming from ETH staking rewards.
The news coincided with a keynote speech by Bitmine's chairman, Tom Lee, at Paris Blockchain Week 2026. Lee declared that the recent market slump constituted a "mini crypto winter" that may already be ending. He argued that equity markets have bottomed due to geopolitical tensions like the US-Israel war with Iran, setting the stage for a recovery.
"Equity markets bottom on bad news. And we’ve had a lot of bad news," said Lee, citing historical examples of markets finding a floor after the outbreak of wars. He posited that this downturn was "unusual" as it did not coincide with a wider bear market in stocks for the first time.
Lee presented a bullish long-term case for Ethereum, suggesting ETH is "probably on its way to 60,000" and later described $62,000 as a fair-value scenario over the next few years. This projection is based on Ethereum reaching roughly one-quarter of Bitcoin's long-term value.
Bitmine's actions contrast its massive paper loss. The company announced a purchase of 71,524 Ether on Monday, April 14th, following its debut on the New York Stock Exchange (NYSE) on April 9th. Bitmine now holds approximately 4.6 million ETH, valued at over $10 billion, representing about 4.04% of the total Ether supply and making it the largest corporate Ether holder. Data from StrategicEthReserve shows SharpLink Gaming is the second-largest holder with 863,000 ETH.
The company has steadily expanded its treasury from 625,000 ETH to over 4.6 million through regular purchases, with an average cost basis of $2,205 per ETH. At the time of reporting, ETH was trading around $2,327, significantly below Bitmine's earlier average cost of $3,660 and representing a 43% decline since October 2025.
Bitmine's business model has undergone a significant shift. The company has phased out mining, reducing its self-mining revenues by over 80% to just $219,000 in Q1 2026, and has fully embraced a staking strategy. However, this transition comes with high costs; general and administrative expenses ballooned to $75 million in Q1, far exceeding revenues and up from under $1 million in Q1 2025.
