Bitmine Immersion Technologies (BMNR) closed 2.8% lower at $18.08 on Tuesday, leaving the stock down 33% so far this year, according to Yahoo Finance. The move came after the company filed its annual report following the market close, with the 10-K — the annual disclosure US-listed companies must file with the Securities and Exchange Commission — showing a net loss of $6.3 billion for the fiscal year ended Aug. 31.

The result marks a sharp reversal from the prior year, when Bitmine posted a net profit of $348.6 million — a big swing over twelve months, and one that underscores how fair-value accounting ties reported results directly to Ether's price.

The filing effectively tells two stories: a massive mark-to-market loss driven by Ethereum's decline, and a staking operation that has become the core of the company's revenue base within a year of launching.

The Paper Loss Behind the Number

Nearly all of the damage sits on paper. Bitmine booked a $6.2 billion unrealized loss on its digital assets, reflecting Ethereum's fall of roughly 44% over the year, from about $4,300 to $2,400. Because the company counts its holdings at fair value, price drops flow directly into reported results. That treatment stems from a US accounting standard, ASU 2023-08, effective for fiscal years beginning after December 2024, which requires companies to measure crypto holdings at fair value each reporting period and run the changes through net income. Bitmine noted that this setup can produce large reported losses even when it has not sold the underlying assets — in other words, the loss is a mark-to-market hit rather than a realized one.

Despite the headline figure, the balance sheet remains sturdy. Bitmine reported $15.4 billion in total assets against only $33.7 million in liabilities. Ether makes up the bulk of that, with 5.9 million coins valued at $14.6 billion. The remainder includes $545 million in cash and 211 Bitcoin valued at $16.6 million, along with $186 million in Beast Industries stock and $77 million in Eightco Holdings stock. Those are small pieces next to the Ether pile.

Staking Pays the Bills

Revenue came in at $124.8 million, above the average analyst estimate of $119.8 million compiled on Yahoo Finance. Staking and validation services generated $121.4 million of that total, or 97%. Staking — committing Ether to help verify transactions and secure Ethereum's proof-of-stake network — pays rewards denominated in the token itself. Bitmine only began staking in November 2025, and revenue in the prior year stood at $6.1 million, which explains the jump of roughly 1,900%.

The company has staked more than 86% of its Ether. In a Monday update, it estimated $309 million in annualized rewards on the 5.23 million ETH it had staked. That same update put total holdings at 6.07 million ETH, or 4.97% of Ether's supply, making Bitmine the largest corporate holder of the asset.

Accumulation Nears Tom Lee's 5% Cap

Bitmine runs on the digital asset treasury model, an approach that spread from Bitcoin to Ether among listed companies and that judges performance by coins held per share rather than by conventional operating metrics. The new SEC filing also gives investors a more complete picture of Bitmine's net asset value, and of how much Ether accrues to each common share after dilution. BitMine added 168,255 ETH since August 31, but after accounting for share issuance, ETH per common share increased just 0.69%. That gap between coins added and per-share growth is the crux for shareholders: it determines whether the pile is growing faster than the number of claims on it.

BITMINE'S 10-K REVEALS THE SHAREHOLDER QUESTION THAT MATTERS BitMine added 168,255 ETH since August 31. But after accounting for share issuance, ETH per common share increased just 0.69%. The new SEC filing also gives us a more complete picture of NAV. $BMNR MNAV = 0.88 NAV… pic.twitter.com/qruPnponYT

— BMNR Bullz (@BMNRBullz) November 11, 2026

At Token2049 in Singapore on Oct. 7, Chairman Tom Lee called 5% of Ether's supply a "hard cap" for the company, and he has said Bitmine will stop buying once it reaches that level. Bitmine recently purchased another 9,587 ETH, putting it within reach of that threshold. Data from DropsTab values the company's current holdings at $12.46 billion, with an unrealized loss of $1.58 billion. From here, the markers to watch are the pace of any final purchases toward the cap, whether staking rewards track the company's $309 million annualized estimate, and how ETH per share develops against the share count.

BMNR was up 0.6% in pre-market trading Wednesday after the filing.