Bitmine earned $45.7 million last quarter from Ethereum staking and validation, but posted a $92.1 million loss on Ethereum-linked options trading. It recorded a quarterly net loss of $83.6 million.

On July 15 (local time), blockchain media outlet CryptoSlate reported that Bitmine's fiscal third-quarter results highlighted both the profitability and risks of an Ethereum-focused financial strategy.

Revenue for the quarter ended May 31 was $46.5 million, up sharply from $2.1 million a year earlier. The increase reflected a shift from a bitcoin mining-focused business structure to an Ethereum financial model.

Derivatives trading weighed on results. Bitmine recorded a $92.1 million loss from Ethereum-linked derivatives during the quarter. Losses totaled $78.6 million from options contracts that expired and $14.0 million from exercised positions. Gains from open contracts were limited to $534,000.

Cumulative losses were also large. Over the first nine months of the fiscal year, derivatives losses totaled $133.3 million, more than double the $56.9 million earned from staking and validation over the same period. Staking began to establish itself as a recurring source of income, but derivatives losses offset a significant portion of it.

As it expanded its Ethereum holdings, dilution of existing shareholders also accelerated. Over nine months, Bitmine issued about 340.7 million BMNR shares via at-the-market sales, raising $11.87 billion after costs. It spent $11.69 billion over the same period to buy Ethereum. As a result, the number of common shares outstanding rose 149 percent to 579.7 million at end-May 2026 from 232.4 million on Aug. 31, 2025.

Based on the funds raised, Bitmine held 5.42 million ETH as of end-May. Its cumulative acquisition cost was $19.05 billion, but the value of the holdings at the time was $10.86 billion, about $8.2 billion below the acquisition cost. The fair value was about 43 percent below the acquisition cost. The decline accounted for most of the $9.04 billion in unrealised digital-asset losses recorded over the first nine months of the fiscal year. Bitmine's total net loss over the same period reached $9.1 billion.

The burden of fixed costs under long-term service contracts is also continuing. Bitmine recorded $12.8 million in expenses this quarter under a 10-year contract with Ethereum Tower. The contract includes consulting, asset management, custody and staking services. The expense equals about 28 percent of quarterly staking and validation revenue.

Another 10-year contract remains. Following its acquisition of Pier Two, Bitmine signed an additional managed services contract with Ethereum Tower related to validator operator MAVAN. Ethereum Tower secured the right to receive 2 percent of MAVAN equity along with a set share of native staking rewards generated on the platform each month. As of May 31, costs under this contract had not yet been reflected in results.

The company does not appear to be facing an immediate liquidity crunch. As of end-May, Bitmine had $340.3 million in cash and $433.1 million in working capital. It had no general borrowing debt. Total liabilities were about $30.1 million and total assets were $11.63 billion.

Bitmine said it can secure the liquidity needed for at least the next 12 months based on existing cash, expected operating cash flow, and its shelf registration and ATM programme. It warned that whether it can keep expanding its Ethereum financial strategy depends in part on access to capital markets. It said that a simultaneous decline in Ethereum prices, weakness in Bitmine's share price and a slowdown in investor demand could raise the cost of additional fundraising or worsen conditions for securities issuance.

The results show the dual nature of Bitmine's Ethereum financial strategy. The staking business is generating revenue of tens of millions of dollars per quarter and has begun to cover core operating expenses excluding digital-asset valuation gains or losses. But derivatives losses, the cost of long-term management contracts and the accumulation of Ethereum through large share issuance are pressuring returns for existing shareholders.

Key variables going forward include whether staking income can consistently exceed derivatives losses and financial costs, and whether the company can maintain access to capital markets while controlling further shareholder dilution.