Bitmine Immersion Technologies closed its fiscal year with a large hole in its books. The company reported a $6.3 billion net loss for the year ended Aug. 31, according to a Form 10-K filed Tuesday. The result was driven mostly by falling Ether prices.
The filing shows a $6.2 billion unrealized loss on digital assets. That swing is stark. Bitmine had posted a $348.6 million net profit in the previous fiscal year.
Balance sheet and holdings
At fiscal year-end, Bitmine listed $15.4 billion in total assets and $33.7 million in liabilities. It held 5.9 million Ether worth $14.6 billion. The company also reported $545 million in cash and cash equivalents, 211 Bitcoin valued at $16.6 million, $186 million in Beast Industries shares, and $77 million in Eightco Holdings shares.
Revenue came in at $124.8 million. That was above the $119.8 million average analyst estimate listed by Yahoo Finance. Staking and validation brought in $121.4 million, or 97% of revenue.
Shares slip after filing
Bitmine shares closed 2.8% lower at $18.08 on Tuesday, according to Yahoo Finance. The stock is down 33% year to date. The 10-K was filed after the market closed, so the next trading session may show a different reaction. I think the market will focus on Ether prices more than the accounting loss.
Largest corporate Ether holder
Bitmine is the largest corporate holder of Ether. In a Monday update, the company said its holdings grew to 6.07 million ETH, or 4.97% of the supply. It estimated $309 million in annualized rewards on the 5.23 million ETH it had staked.
At Token2049 in Singapore on Oct. 7, Bitmine Chairman Tom Lee described 5% of Ether’s supply as a hard cap for the company’s holdings. That target leaves little room above the current level, perhaps by design. The filing gives a clearer view of how much the company’s results depend on Ether’s price and staking income.
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