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BitMine’s $46.5M revenue surge crushed by $92.1M Ethereum options loss

For the fiscal third quarter ended May 31, BitMine reported a net loss of $83.6 million after Ethereum-linked derivatives losses more than doubled its staking and validation income.

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BitMine said it generated nearly $46.5 million of revenue in its fiscal third quarter ended May 31, with about 98% of that total, or $45.7 million, coming from staking and validation as the company shifted its corporate treasury model further toward Ethereum. CryptoSlate reported the company accelerated the away-from-Bitcoin-mining approach and used the staking activity to support validation on the Ethereum network.

Despite the staking-led revenue jump, BitMine posted an $83.6 million net loss for the quarter, according to CryptoSlate. The company said the biggest drag came from its Ethereum-linked options strategy, which produced a $92.1 million loss over the three months.

CryptoSlate reported BitMine attributed $78.6 million of the derivative loss to the net impact of option contracts that expired during the quarter, with another $14 million tied to exercised positions. A $534,000 gain on contracts that remained open provided only a limited offset, leaving derivatives losses roughly twice the staking and validation revenue for the period.

Over the first nine months of the fiscal year, the company recorded $133.3 million in total derivative losses, with $79.3 million from exercised contracts and $54.5 million from expired positions, partly offset by a $515,000 gain on open contracts. CryptoSlate said BitMine’s options approach relied largely on selling put options as part of its broader treasury management, a strategy that can generate premium income but can also lead to large losses when prices move against the seller.

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