BitMine Immersion Technologies posts $3.81 billion quarterly net loss driven by unrealized Ethereum losses

Ethereum-focused treasury firm BitMine Immersion Technologies reported a net loss of $3.81 billion for the quarterly period ending February 28, according to a 10-Q filed with the U.S. Securities and Exchange Commission on Tuesday.

Losses driven by Ethereum holdings

The company said its results were largely driven by mounting unrealized losses tied to its Ethereum portfolio, which accounted for nearly 99% of its reported losses. Over a longer timeframe, BitMine reported losses extending beyond $9 billion across the six-month span ending in February.

BitMine attributed the performance to its ETH treasury strategy and capital-light ecosystem services, writing that “ETH market conditions, which affect the value of our holdings and the economics of any staking or staking-adjacent activities,” are now a key driver of its results.

Other investments and year-ago comparison

BitMine also reported an unrealized loss of around $21 million related to its investment in Eightco (ORBS), a Worldcoin treasury firm that provides exposure to private artificial intelligence company OpenAI.

Compared with the same period last year, the firm’s results deteriorated substantially, after it reported a loss of just $1.15 million in the prior-year quarter.

Ethereum price declines and portfolio metrics

BitMine’s largest losses were tied to Ethereum. The asset, described as the primary treasury vehicle for the firm, has fallen nearly 53% from its August all-time high of $4,946, and recently traded at $2,346. At the close on February 28, ETH was around $1,965, down from about $2,800 at the start of December.

The company said it continues to add to its holdings, including a $157 million ETH purchase reported earlier this week. BitMine reported it holds 4,874,858 ETH worth more than $11.3 billion, but said it has paid nearly $17 billion to accumulate its first 4.47 million ETH.

Based on the firm’s figures, about 92% of BitMine’s total ETH holdings were accumulated at an average price of around $3,794 per ETH—roughly 63% higher than the asset’s current trading level. The firm noted that losses have narrowed in recent days as ETH rose about 4% over the last week of trading.

Market reaction to the filing

BitMine’s shares (BMNR), which were uplisted last week to the NYSE from NYSE American, were up around 1% on Wednesday, trading at $21.69. The stock has fallen nearly 60% over the last six months and is down 20% year-to-date.