According to Woofun AI, Ethereum treasury company BitMine (BMNR.US) disclosed in its 10-K annual report to the US Securities and Exchange Commission that the net loss for the fiscal year ending August 31, 2026 was about US$6.313 billion, a sharp reversal from the previous fiscal year's net profit of US$349 million.
The core driving force behind this huge loss was not a contraction in operating businesses, but rather sharp fluctuations in the fair value of digital assets. The company recorded an unrealized digital asset loss of around $6.229 billion throughout the year, mainly due to a drop in the price of ETH — ETH fell from around $4,390 to $2,466 during the fiscal year, a drop of around 44%. Looking at the revenue structure, BitMine's annual revenue is about US$125 million, of which the pledge and verification business contributed about US$121 million, accounting for about 97% of total revenue.
According to data compiled by Woofun AI, by the end of the fiscal year, the company held 5,901,837 ETH and 211 BTC. The cost of holding ETH was about 19.048 billion US dollars, the fair value at the end of the period was about 14.559 billion US dollars, and the book loss was significant.
Notably, according to the position update released by BitMine on November 9, as of November 8, the company's ETH holdings had increased to 6,070,092 units, accounting for 4.97% of the ETH supply, of which 5,227,037 were pledged, indicating that it is still growing during the downward price cycle. However, there is a clear limit for increasing holdings: the company's chairman Tom Lee once said that once the position reaches the 5% ETH supply target set in June 2025, purchases will stop. Currently, 4.97% is only 0.03 percentage points from this target.
This financial characteristic of “meager revenue and huge losses” highlights the vulnerability of pure asset-holding Web3 companies during the downturn in the market. Following the transformation of many mining companies, this once again verifies the huge valuation risks faced by business models that rely on price fluctuations of a single crypto asset under extreme market conditions.