BitMine Doubles Down on Ether Despite $6.5B Paper Loss

BitMine Immersion Technologies expanded its Ethereum (ETH) holdings beyond 5 million ETH, despite carrying a US$6.5 billion (AU$9.36 billion) paper loss.

BitMine said its crypto, cash and investment holdings totalled US$13.3 billion (AU$19.15 billion), including 5,078,386 ETH priced at US$2,369 (AU$3,411) per token. 

Moreover, the position represents 4.21% of Ethereum’s 120.7 million token supply and puts it 84% of the way toward its stated target of acquiring 5% of ETH.

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Staking Offsets Volatility

BitMine has tried to turn part of the treasury into an income-producing position by staking 3,701,589 ETH, valued at US$8.8 billion (AU$12.67 billion).

BitMine Chairman Tom Lee said the firm had staked more ETH than any other entity, with MAVAN and staking partners projected to generate US$363 million (AU$522.72 million) in annual rewards at a 3.033% seven-day BMNR yield.

That staking engine has already become the company’s main operating revenue source as BitMine’s 10-Q showed quarterly revenue of US$11.041 million (AU$15.90 million) for the three months ended Feb. 28, with US$10.201 million (AU$14.69 million) coming from ETH staking.

But the same filing shows BitMine posted a US$3.818 billion (AU$5.50 billion) quarterly net loss, while unrealised losses from digital asset holdings reached US$3.775 billion (AU$5.44 billion) for the period.

Lee framed the 5 million ETH threshold as a milestone in BitMine’s push toward 5% of Ethereum supply. The company also held 200 Bitcoin (BTC), US$940 million (AU$1.35 billion) in cash, a US$200 million (AU$288 million) stake in Beast Industries and a US$91 million (AU$131.04 million) stake in Eightco Holdings.

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