BitMine turned one of the world’s largest corporate Ethereum holdings into a staking machine last quarter, pulling in $45.7 million. The options trading on the same asset then wiped that out – and then some.
Losses on Ethereum-linked derivatives hit $92.1 million in the fiscal third quarter ended May 31. That is more than double the revenue from staking and validation. The company posted a net loss of $83.6 million, compared with a $623,000 deficit a year earlier.
Revenue surged to $46.5 million from $2.1 million, with 98% coming from staking. BitMine has clearly shifted its focus away from Bitcoin mining toward an Ethereum-heavy treasury model. But the derivatives bet has been a costly addition.
Of the $92.1 million options loss, $78.6 million came from contracts that expired during the quarter. Another $14 million was booked on exercised positions. A $534,000 gain on still-open contracts offered little relief. BitMine had no derivatives activity in the year-ago period – a stark change in risk appetite.
Over the first nine months of the fiscal year, derivative losses totaled $133.3 million. That is more than twice the $56.9 million earned from staking in the same stretch. The company said its strategy centered on selling put options, a tactic meant to generate premium income or facilitate asset purchases. When prices move against the seller, the downside can be severe.
General and administrative expenses also ballooned to $37.3 million from $744,000 a year earlier. Management pointed to higher custody and treasury-management fees, salaries, and stock-based compensation for directors.
Staking revenue alone still covered the quarter’s cost of sales and administrative expenses before digital-asset valuation changes. But the options bleed overwhelmed those fundamentals. The next quarterly filing will show whether BitMine reins in its derivatives exposure or doubles down on the same playbook. For now, the numbers are clear: staking income alone cannot keep pace with leveraged bets on the same asset.
BitMine’s $92M Ethereum options loss erased its staking gains
BitMine earned $45.7 million by locking Ethereum and helping process transactions, but Ethereum-linked options lost $92.1 million in the same quarter. The loss pushed BitMine to an $83.6 million net loss, up from $623,000 a year earlier, showing the risk of its shift toward an Ethereum-heavy strategy.