Bitmine’s latest filing with the U.S. Securities and Exchange Commission shows a sharp expansion in both its equity base and its Ethereum holdings. Outstanding shares climbed from 232 million on August 31, 2023, to 494 million on February 28, 2024. Over the same six-month period, the company completed more than $10.2 billion in capital raises, lifting total paid-in capital to $18.5 billion. The filing said every dollar of that new funding was used to acquire ether.
As of April 12, Bitmine held 4.87 million ETH at an average purchase price of $2,206 per coin. The company said that stockpile represents about 5% of total global ether supply, placing Bitmine at the top of institutional Ethereum reserves. On a broader institutional crypto reserve ranking, it trails only bitcoin-focused Strategy.
Mining revenue shrinks as staking takes center stage
Bitmine reported a $3.8 billion net loss for the first quarter of 2024. Ether’s rise to around $2,325 helped offset part of the damage through the value of its holdings, but the operating picture remained strained. Revenue from the company’s in-house mining business fell 86% year over year to just $219,000.
Staking became the main alternative source of income. In the quarter, Bitmine generated $10.2 million from staking ether, bringing total revenue to $11 million. Expenses moved in the opposite direction. General and administrative costs reached $75 million for the quarter, and over the past six months those costs totaled $298.6 million, while total income stood at only $13.3 million. The report said premium equity incentive payouts linked to the enlarged capital base were one of the biggest cost drivers.
First disclosure of derivatives exposure and other assets
Bitmine also disclosed derivatives positions for the first time in a public report. In the first quarter of 2024, it posted an unrealized loss of $65.3 million from derivatives trading, while collecting $24.1 million in premiums from selling options. The figures suggest the company is using options and related strategies to extract additional returns from its ether-heavy balance sheet.
At the end of February, Bitmine held $879.6 million in cash. Its portfolio also included 198 bitcoin, $200 million in shares of Beast Industries, and an $85 million stake in Eightco Holdings. Chairman Tom Lee said in March that the recent decline in Ethereum prices “presented an attractive opportunity in light of evolving fundamentals.” The company added that purchases accelerated starting in April.