BitMine's $46M Ethereum staking gain wiped by $92M derivatives loss
In brief
- BitMine earned $45.7M from Ethereum staking and validation in Q3 FY2026
- Derivatives loss of $92.1M on put options overwhelmed staking gains
- Net loss reached $83.6M despite revenue surging to $46.5M
- Year-to-date derivative losses totaled $133.3M, exceeding staking income
Staking Revenue Swamped by Options Losses
BitMine generated nearly $46 million from staking and validation in the third quarter. That figure represented about 98% of the company's total revenue of $46.5 million — a sharp jump from $2.1 million in the same quarter a year earlier.
But the derivatives strategy undercut the gains. BitMine attributed $78.6 million of the options loss to contracts that expired during the quarter, with another $14 million tied to exercised positions. The company said its strategy consisted primarily of selling put options as part of its broader treasury-management program.
The result: BitMine posted an $83.6 million net loss for the fiscal third quarter. On a non-GAAP basis, the adjusted loss was $70.8 million.
A Broader Pattern Emerges
The third quarter wasn't an isolated stumble. Over the first nine months of the fiscal year, BitMine's derivative losses totaled $133.3 million, while staking and validation generated $56.9 million. The derivatives losses were therefore more than twice the income produced by staking ETH.
To fund its Ethereum purchases, BitMine raised capital aggressively. The company sold approximately 340.7 million shares through its at-the-market program, raising $11.87 billion. Over the same nine-month period, BitMine spent about $11.69 billion purchasing ETH. Outstanding common shares surged 149% in nine months, from 232.4 million to 579.7 million.
Rising Costs Compound the Pressure
General and administrative expenses climbed to $37.3 million from $744,000 a year earlier. Management attributed the increase largely to digital-asset custody and treasury-management fees, higher salaries, and increased compensation. The cost inflation reflects the scale of the new treasury operation.
BitMine had no derivatives activity during the comparable quarter a year earlier. The shift into options trading represents a material change in how the company deploys its Ethereum holdings. Staking provides recurring income. Options trading introduces leverage and concentrated downside risk.
The validation business has begun generating meaningful recurring revenue, but the broader treasury strategy has consumed those gains.
