BitMine Immersion Technologies reported a roughly $7 billion unrealized loss after Ether slid below $2,100, sharply reducing the market value of its large ETH treasury. The drop, recorded on Feb. 5, 2026, exposed the concentrated, Ethereum‑centric structure of BitMine’s balance sheet and immediately depressed reported profit metrics.
BitMine held approximately 4.285 million ETH, a position that represented about 3.55% of circulating supply and carried an estimated paper loss of about $7 billion after ETH traded near $2,092. The coins were acquired at an average cost between $3,800 and $3,900, and the position’s peak valuation approached $14 billion in late 2025 and early 2026.
Company filings and market data show the valuation swing translated into a large non‑cash hit under standard accounting treatment for digital assets. BitMine reported full‑year fiscal 2025 net income of $328.16 million and revenue of $6.1 million. That record contrasted with a reported Q1 fiscal‑2026 negative EBITDA of about $‑5 billion and net income of $‑5.20 billion, figures driven largely by mark‑to‑market adjustments on its ETH holdings.
The firm held roughly $900 million of cash, providing a buffer against short‑term operational needs but leaving a material gap relative to the scale of mark‑to‑market losses.
Holdings, accounting and Bitmine strategy
BitMine’s stock has reflected the volatility of its treasury: a strong 1‑year return at times exceeded 348.5% but the 5‑year performance remained down more than 90%, and the share price recently fell about 24.4%, trading below key technical averages. The company also reported staking roughly 2 million ETH at an annual yield near 2.8% and plans to launch a domestic validator network, MAVAN, in early 2026 to expand staking and validator services.
Chairman Tom Lee defended the strategy publicly, framing the unrealized losses as a design feature of BitMine’s model aimed at capturing full cycle upside. “Ethereum is the future of finance,” he said, and the firm recently added about 41,000 ETH to its treasury, signaling continued conviction.
From a governance and compliance perspective, large mark‑to‑market swings pose questions about disclosure, liquidity risk and capital allocation. The firm’s decision to retain and stake assets rather than realize losses preserves upside but amplifies reported earnings volatility under prevailing accounting rules.
The market will look for clearer guidance in the coming weeks on whether BitMine will alter its accumulation strategy, adjust staking versus liquid holdings, or pursue capital raises to shore up liquidity.
