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BitMine posts $2.8B quarterly profit driven by Ethereum gains, but yearly net loss surpasses $6B

BitMine’s filings reveal $2.8 billion in quarterly profit from unrealized Ethereum gains, alongside $17.5 million in operating cash outflows.

Quick Take

  1. BitMine’s Nov. 10 accounts imply roughly $2.8 billion in June-August net income, calculated from annual less nine-month results.
  2. A calculated $2.8 billion unrealized digital asset gain drove the quarterly profit, while operations used $17.5 million in cash.
  3. The profitable final quarter left a $6.3 billion full-year net loss, separating the earnings rebound from operating cash generation.

BitMine’s annual filing implies a nearly $2.8 billion profit for the Ethereum treasury company in the three months ended Aug. 31, driven by unrealized gains on its digital assets.

The annual accounts filed Nov. 10, compared with the nine-month statements through May, make the final-quarter result measurable for the first time.

CryptoSlate calculated the June-August figures by subtracting the cumulative nine-month amounts from the full-year totals.

BitMine reported a full-year net loss of about $6.3 billion, against a $9.1 billion loss for the first nine months. Calculations using the filings’ underlying figures imply $2.8 billion in final-quarter net income, measured before preferred distributions.

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The principal driver was a calculated $2.8 billion unrealized digital asset gain during June-August, slightly more than the quarter’s net income. The cumulative unrealized loss had narrowed from about $9 billion through May to $6.2 billion for the full year.

Under BitMine’s accounting policy, digital assets are measured at fair value, and changes flow through net income. A higher valuation can increase reported earnings without a corresponding cash receipt.

BitMine operations still used cash

BitMine used $305.1 million in operating activities over the full year and $287.6 million over the first nine months. The difference is $17.5 million of operating cash used in June-August, despite the calculated profit.

A $2.8 billion profit. Cash still went out.

Bitmine’s calculated June–August profit was powered by unrealized crypto gains. A valuation entry can lift income without creating cash; operating activities still used cash.

Compare earnings with operating cash

Calculated quarter: the $2,809.474m revaluation gain exceeded $2,792.717m net income. Operating activities used $17.557m.

The calculated quarter turned profitable; operating cash was negative in both reporting windows.

Quarterly figures are calculated, not separately reported. Net income is after tax; revaluation is before tax, so these bars are not an earnings reconciliation. Cash uses a separate scale. Axes change with the selected period. August results do not describe November performance.

Staking and validation remained a substantial revenue source. Subtracting the same periods implies $64.4 million of final-quarter staking and validation revenue, out of $64.9 million in total revenue. Those earnings from services sit alongside the much larger valuation gain, but revenue and cash receipts remain different measures.

For the full year, the cash-flow statement separately adjusts for noncash staking and validation revenue and includes $3 million of digital asset sale proceeds in operating activities.

The July numbers for staking income and options losses concerned the earlier quarter ended May 31. The annual filing now completes the summer comparison, with revaluation lifting reported profit, while operating activities continued to consume cash.

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Related Company BitMine A Bitcoin network company Related Asset Ethereum ETH $2,052.51 24-hour change: down 0.56%